SVB Financial Plans To Acquire Boston Private Financial For $900 Million

SVB Financial Group plans to acquire Boston Private Financial Holdings for about $900 million. The merger deal means that Boston Private shareholders would get 0.0228 shares of SVB common stock and $2.10 of cash for each Boston Private share they own, the companies said in a press release.

The arrangement is based on SVB’s closing stock price of $387.83 on Dec. 31. Boston Private Financial Holdings is the parent company of Boston Private Bank & Trust Co.

The overall goal is to expand SVB’s private banking and wealth management business. SVB is the parent company of Silicon Valley Bank.

“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. He said Boston Private’s team along with its “robust service offering, and advanced technology platform will significantly bolster our private bank and wealth management capabilities.”

Anthony DeChellis, CEO of Boston Private, said that the combined company “will be well-positioned to grow and scale our business.” Combined private bank and wealth management assets under management would be $17.7 billion, the release said.

Santa Clara, California-based SVB said the acquisition would accelerate its growth in private banking and wealth management. SVB said it wants “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 Boston Globe reported that SVB’s market value has surged more than 60 percent over the past three years amid the latest boom in the tech industry. In contrast, Boston Private’s shares have fallen by 45 percent.

DeChellis will be co-head of private banking and wealth management with SVB’s Yvette Butler after the deal is completed in mid-2021, the Globe said.