NEW YORK (TheStreet) -- Shares of City National Corp. (CYN) are climbing higher by 19.08% to $88.80 in pre-market trading on Thursday morning, following the company's announcement that it has agreed to be acquired by Royal Bank of Canada (RY - Get Report) for approximately $5.4 billion.
City National is a bank and financial holding company. Royal Bank of Canada is a banking company.
"This combination is a compelling opportunity. It will deliver significant value to City National shareholders along with the opportunity to participate in the growth of RBC," City National CEO Russell Goldsmith said in a statement.
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The cash and stock transaction is valued at approximately $93.80 per City National share. The deal is expected to close before the end of the year.
"[The merger] will promote both continuity and growth, enabling our outstanding team of colleagues to maintain and even strengthen City National's value proposition. It will also enhance what we can do for our clients and the communities we serve," Goldsmith added.
Additionally, City National also released its 2014 fourth quarter financial results today and said earnings were $1.10 per share compared to 95 cents per share in the 2013 fourth quarter. Revenue for the quarter grew to $325 million from $296 million for the same period last year.
Separately, TheStreet Ratings team rates CITY NATIONAL CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate CITY NATIONAL CORP (CYN) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, expanding profit margins and increase in net income. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."
You can view the full analysis from the report here: CYN Ratings ReportCYN data by YCharts