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January 13, 2021

Banking market snapshot: 2021 sees its first big deals

By Patrick Brusnahan

While the year warms up and gets ready to roll, the financial services industry witnessed two big deals between 3 January 2021 and 9 January 2021. This is set to be just the beginning.

There were 31 deals in the week and two said deals involved hundreds of millions, according to GlobalData.

SVB Financial Group acquired Boston Private Financial for $900m. According to a statement by Silicon Valley Bank, the transaction has been unanimously approved by both companies’ boards of directors and is expected to close in mid-2021.

Under the terms of the agreement, Boston Private shareholders would receive 0.0228 shares of Silicon Valley Bank common stock and $2.10 of cash for each Boston Private share they own, representing a total consideration value of approximately $900m.

The deal is said to accelerate the development of the private bank and wealth management offerings from SVB Financial. The combined entity will have $17.7bn in private bank and wealth management assets under management.

SVB Financial Group president and CEO Greg Becker said: “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.”

Furthermore, Indolife Pensiontama acquired a 6.07% stake in PT Bank Mega Tbk for $207.2m. Both firms are based in Indonesia.

In addition, Routemaster Capital spent $13.9m for a stake in Valour Structured, Morris Capital spent $5.5m for 100% of Masia Investment, and Douugh bought Goodments for $1.2m.

Of the 31 deals in the week, four were in Asia Pacific, seven were in Europe, one was in Central and South America, but the week was dominated by 18 deals in North America.

As well as the SVB deal, private banking saw three other deals with undisclosed fees. Rockefeller Capital Management went for Whitnell & Co, HighTower Advisors acquired Bel Air Investment, and Arthur J Gallagher bought Ashton Tiffany.

This shows that M&A is ready to go in the banking sector, and private banking and wealth management is not going to shy away from it. With the biggest deal of the week in the sector, private banking has money to spend and it intends to do so.

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