The acquisition is expected to speed up the growth of SVB's private banking and wealth management offering

SVB Financial

SVB to acquire Boston Private (Credit: Pixabay/Capri23auto.)

SVB Financial Group (SVB), the parent company of Silicon Valley Bank, has entered into an agreement to acquire Boston Private Financial, the holding company of Boston Private Bank & Trust Company, for $900m.

Boston Private is a provider of integrated wealth management, trust and banking services to individuals, families, businesses and nonprofit organisations.

Based on the figures at the end of September last year, the combined private bank and wealth management assets under management are expected to reach $17.7bn.

SVB, the Santa Clara, California-based financial services provider, aims to become a premier financial partner to businesses and entrepreneurs by offering commercial banking, investment banking, private banking and wealth management and fund management services.

The acquisition of Boston Private is expected to accelerate SVB’s private bank and wealth management offering and strengthening its overall platform.

SVB Financial Group president and CEO Greg Becker said: “Our clients rely on us to help increase the probability of their success – both in their business and personal lives.

“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.”

Boston Private acquisition to help SVB expand its wealth management solutions

Boston Private’s product offering and recently redesigned technology platform is also expected to help SVB expand its existing wealth management solutions such as complex strategies to manage concentrated stock positions, adding tax planning, trust services, philanthropy and estate planning, along with improved digital client experience.

Under the terms of the agreement, shareholders of Boston Private will receive 0.0228 shares of SVB common stock and $2.10 of cash for each Boston Private share they own.

Subject to customary closing conditions, regulatory and shareholders’ approvals, the deal is expected to be closed in the middle of this year.