Photo by James Sanna | Banker & Tradesman Staff
The parent company of Santa Clara, California-based Silicon Valley Bank has agreed to acquire Boston Private Bank & Trust Company in a deal valued at approximately $900 million.
The transaction has been unanimously approved by both companies’ boards of directors and is expected to close in mid-2021, according to a statement by Silicon Valley Bank.
Boston Private Bank had more than $9 billion in total assets at the end of the third quarter while Silicon Valley Bank has $95 billion in assets.
The deal includes Boston Private’s wealth management divisions. The combined assets under management in the new combination’s wealth management division would be $17.7 billion, based on Sept. 30 figures, according to the statement. The deal joins two major wealth management players in two of America’s leading tech hubs. An SVB spokesperson said the bank had doubled its total client positions – a combination of deposits, loans and wealth management accounts – in the last two years, to $10 billion.
Under the terms of the merger agreement, Boston Private shareholders would receive 0.0228 shares of Silicon Valley Bank common stock and $2.10 of cash for each Boston Private share they own, representing a total consideration value of approximately $900 million based on SVB’s closing stock price of $387.83 on Dec. 31, according to the statement.
“SVB’s vision is to be the premier financial partner for the innovation economy, providing companies, entrepreneurs and their investors the services they need to succeed via four core businesses: commercial banking, investment banking, private banking and wealth management and fund management,” SVB said in the statement.
The bank added that the acquisition of Boston Private would accelerate its private bank and wealth management offering and strengthen its overall platform and ability to meet the financial needs of its clients.
“Our clients rely on us to help increase the probability of their success – both in their business and personal lives,” Greg Becker, president and CEO of SVB Financial Group, said in the statement. “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.”
SVB Financial Group, the bank’s parent company, offers commercial and private banking, asset management, private wealth management, brokerage and investment services and funds management services to companies in the technology, life science and healthcare, private equity and venture capital and premium wine industries, according to the statement. Boston Private provides integrated wealth management, trust and banking services to individuals, families, businesses and nonprofits.
Boston Private’s clients will benefit from greater access to investment opportunities and participation in the innovation economy, SVB said in the statement, and “the power of SVB’s large balance sheet to support their borrowing needs.” Silicon Valley held $95 billion in total assets as of Sept. 30, according to FDIC data.
“Together, SVB and Boston Private will be well-positioned to grow and scale our business, leveraging SVB’s deep client relationships and broad reach across the innovation economy to capture a greater share of the wealth management market,” Anthony DeChellis, CEO of Boston Private, said in the statement. “We look forward to working together to support our clients as they pursue the goals they have for their businesses, families and legacies.”
Goldman Sachs & Co. LLC acted as financial advisor to SVB in the transaction. Sullivan & Cromwell LLP served as legal counsel to SVB. Morgan Stanley & Co. LLC acted as financial advisor to Boston Private and Wachtell, Lipton, Rosen & Katz served as legal counsel.
