Boston Private Financial Holdings (BPFH) - Get Boston Private Financial Holdings, Inc. Report was surging Tuesday after SVB Financial Group (SIVB) - Get SVB Financial Group Report agreed to acquire the banking and wealth-management company for $900 million.
Shares of the Boston company at last check jumped 31% to $10.96.
SVB Financial, the Santa Clara, Calif., banking and financial-services holding company, was down 0.7% to $384.72.
The boards of both companies approved the transaction. The deal is subject to conditions including regulatory clearances and a vote of Boston Private holders. The companies hope to close the deal in mid-2021.
Assets under management of the combined private bank and wealth-management provider would be $17.7 billion, based on Sept. 30, 2020 figures.
Under the agreement, SVB will swap $2.10 cash plus 0.0228 common share for each Boston Private share. The deal is valued at about $900 million based on SVB's closing stock price of $387.83 on Dec. 31.
Boston Private Chief Executive Anthony DeChellis and SVB’s head of private bank, wealth advisory and wine, Yvette Butler, will be co-heads of private banking and wealth management after the deal is completed, according to the Boston Globe.
SVB has helped fund more than 30,000 startups and is one of the largest providers of financial services to wine producers in Napa Valley.
The two companies together will "[leverage] SVB's deep client relationships and broad reach across the innovation economy to capture a greater share of the wealth management market," DeChellis said in a statement.
SVB, the parent of Silicon Valley Bank, has about 4,300 employees, while Boston Private has 780 at locations in Boston, New York, Florida, Los Angeles, and the San Francisco Bay Area, the Boston Globe reported.
SVB said it planned $200 million of charges to cover the costs of integrating the two companies’ technology systems and real estate and to retain Boston Private employees.