SVB Financial Group in Santa Clara, Calif., has agreed to buy Boston Private Financial Holdings in Boston.
The $96.9 billion SVB said in a press release Monday that it will pay $900 million in cash and stock for the $9.4 billion-asset Boston Private. The deal, which is expected to close in mid-2021, priced Boston Private at 115% of its tangible book value.
SVB said the acquisition will accelerate its push into private banking and wealth management. Boston Private has $16.3 billion of assets under management, a far larger amount than the $1.4 billion at SVB.
"Our clients rely on us to help increase the probability of their success — both in their business and personal lives," Greg Becker, SVB’s president and CEO, said in the release.
"Boston Private's experienced and well-regarded team, robust service offering and advanced technology platform will significantly bolster our private bank and wealth management capabilities and enhance our ability to offer products and services tailored to the needs of founders, executives and investors," Becker added.
Anthony DeChellis, Boston Private’s CEO, and Yvette Butler, SVB’s head of private banking and wealth advisory, will lead the combined private banking and wealth management business.
The deal is supposed to create "low single digit EPS accretion" when factoring in $200 million in restructuring charges, SVB said in its presentation. Those expenses include about $65 million tied to a technology systems integration — SVB said it plans to adopt Boston Private's digital platforms.
SVB said it plans to cut about a fifth of Boston Private's noninterest expenses.
Goldman Sachs and Sullivan & Cromwell advised SVB. Morgan Stanley and Wachtell, Lipton, Rosen & Katz advised Boston Private.
