SVB Financial Group agreed today to buy Boston Private Financial Holdings of Boston for $ 900 million in cash and shares.
This is a big deal for SVB, which in its 37 year history has made a name for itself as a bank that is friendly to both startups and venture and private equity investors. Boston Private was founded in 1987 and has approximately $ 16.3 billion in assets under management, compared to SVB Asset Management's $ 1.4 billion.
The SVB, which founded its wealth advisory business in 2011, has been pushing into wealth management more aggressively for several years and hires Yvonne Butler, who previously headed capital strategies at Capital One, in mid-2018.
Since then, Butler has added members to the bank's wealth management team, telling Business Insider last year that “I see my job primarily as a retention strategy. . Customers are already there. We helped them to expand their fund or their business – and I see our role as a private bank and investment advisor as a retention. "
Greg Becker, President and CEO of SVB, underlined SVB's commitment to strengthening its relationships with high net worth individuals who already do business with the bank, and said in a press release today about the new collaboration: “Our customers rely on we increase the likelihood of your success – both in business and in private life. "
Butler will lead the combined private banking and wealth management business with Anthony DeChellis, who has been CEO of Boston Private for the two years. DeChellis joined the outfit after a brief stint as president of the crowdfunding platform OurCrowd and previously as CEO of Credit Suisse Private Banking (Americas) for more than seven years.
As part of the transaction, Boston Private shareholders will receive 0.0228 SVB common shares and $ 2.10 cash for each of their shares.
Bank stocks were generally beaten in 2020, but as the Boston Globe notes, SVB's stocks have risen more than 60% over the past three years due to its focus on the tech world, while Boston Private stocks have increased 45%. have fallen.