SVB Financial Group to acquire Boston Private to bolster private bank and wealth management offering

By Pavithra R

SVB Financial Group, the parent of Silicon Valley Bank, the bank of the world’s most innovative companies and their investors, has announced entering into a definitive merger agreement with Boston Private Financial Holdings, the parent company of Boston Private Bank & Trust Company, a leading provider of integrated wealth management, trust and banking services to individuals, families, businesses and nonprofits, pursuant to which SVB will acquire Boston Private. The transaction is expected to close in the mid-2021 subject to customary closing conditions.

Under the terms of the deal, Boston Private shareholders will receive 0.0228 shares of SVB common stock and $2.10 of cash for each Boston Private share they own, representing a total consideration value of approx. $900 mn based on SVB’s closing stock price of $387.83 on December 31, 2020. The combined private bank and wealth management assets under management would be $17.7 bn, based on 9/30/20 figures.

Through the acquisition, SVB is planning to accelerate its private bank and wealth management offering, bolster SVB’s overall platform and ability to meet its clients’ financial needs. ​The firm’s vision is to be the premier financial partner for the innovation economy, providing companies, entrepreneurs and their investors the services they require to succeed via 4 core businesses: commercial banking, investment banking, private banking and wealth management and fund management. 

“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,” said Greg Becker, President and CEO of SVB Financial Group.

Boston Private provides a complete spectrum of wealth, trust, and private banking services dedicated to helping clients simplify and strengthen their financial positions. SVB will leverage Boston Private’s product suite and its recently redesigned technology platform to expand SVB’s existing wealth management solutions, including complex strategies to manage concentrated stock positions, trust services, to add tax planning, philanthropy and estate planning, while offering a significantly enhanced digital client experience. Boston Private’s clients will benefit from increased access to investment opportunities and participation in the innovation economy, along with the power of SVB’s large balance sheet to support their borrowing needs.

“Together, SVB and Boston Private will be well-positioned to grow and scale our business, leveraging SVB’s deep client relationships and broad reach across the innovation economy to capture a greater share of the wealth management market. We look forward to working together to support our clients as they pursue the goals they have for their businesses, families and legacies,” said Anthony DeChellis, CEO of Boston Private. 

Goldman Sachs & Co. LLC acted as financial advisor to SVB while Morgan Stanley & Co. LLC acted as financial advisor to Boston Private.