Boston Private acquired by Silicon Valley Bank for $900 million

The stock and cash deal will create a $17.7 billion wealth management enterprise

Boston Private Financial Holdings is being acquired by SVB Financial Group, creating a $17.7 billion wealth management enterprise.

SVB Financial, the Santa Clara, California-based parent of Silicon Valley Bank, announced late Monday that it is paying $900 million in a cash and stock deal for the Boston-based private bank.

According to the terms of the deal, Boston Private shareholders will receive 0.0228 shares of SVB common stock and $2.10 of cash for each Boston Private share they own. The $900 million total purchase price is based on SVB’s closing stock price of $387.83 on Dec. 31.

Boston Private stock finished Monday down 71 basis points, but has since spiked by more than 21% in after hours trading. Shares of SVB Financial finished down 13 basis points and gained enough in after hours trading on Monday to be down 11 basis points.

“Our clients rely on us to help increase the probability of their success — both in their business and personal lives,” said Greg Becker, president and CEO of SVB Financial Group, in a prepared 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,” he added.

According to the announcement, 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. The acquisition of Boston Private is described as accelerating SVB’s private bank and wealth management offering, strengthening SVB’s overall platform and ability to fully meet the financial needs of its clients.

Boston Private provides a full spectrum of wealth, trust, and private banking services.

With Boston Private’s product suite and recently redesigned technology platform, SVB expects to expand its existing wealth management solutions, which include complex strategies to manage concentrated stock positions, to add tax planning, trust services, philanthropy, and estate planning, while offering a significantly improved digital client experience.

According to the announcement, Boston Private’s clients will benefit from greater access to investment opportunities and participation in the innovation economy, as well as the power of SVB’s large balance sheet to support their borrowing needs.

“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 a prepared statement.

The transaction has been unanimously approved by both companies’ boards of directors and is expected to close in mid-2021, subject to the satisfaction of customary closing conditions, including receipt of customary regulatory approvals and approval by the shareholders of Boston Private.

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