Boston Private Bank & Trust Company, owned by Boston Private Financial, has agreed to purchase all of the assets of Banyan Partners, a US-based independent registered investment advisory firm with over US$4.3 billion in client assets.
The transaction, which is subject to regulatory approval and customary closing conditions, is expected to complete in the fourth quarter of 2014.
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As part of the deal, Boston Private Bank will set up a new, wholly owned subsidiary that will integrate its existing wealth management business with that of Banyan Partners and the combined entity will have approximately US$9 billion in client assets under management.
Under the terms of the agreement, Boston Private is expected to pay approximately US$60 million in cash and stock upon closing, and Banyan Partners will have the option to get additional consideration over a two year earn-out period.
The deal will expand BPFH’s total client assets in its wealth management businesses (including trust) to approximately US$30 billion of total client assets.
Following the acquisition, Peter Raimondi, Banyan Partners’ founder and CEO, will become CEO of the new wealth management company and key members of both firm’s management teams will take over senior roles in the new entity.
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By GlobalDataIn addition, Boston Private Bank’s executive vice president, John Sullivan, will become chief business development officer, while Thomas Manning, Banyan Partner’s CIO, will become CIO for the new entity.
The acquisition is expected to add US$4.3 billion in client assets, nine locations to the Bank’s expanding wealth management operation as well as add more than US$25 million of annual fee-based revenue or result in an increase in the consolidated, non-spread based revenue to approximately 45% of total revenue.
Mark Thompson, president and CEO, Boston Private Bank said: "By combining the proven strengths of Boston Private Bank, and Boston Private Wealth Management and Trust, with the distinctive investment management capabilities of Banyan Partners, we are creating a comprehensive, national wealth management firm.
"Joining forces will allow us to leverage our deep investment expertise, deliver innovative and contemporary wealth advisory services, and offer direct access to Boston Private Bank’s tradition of distinctive services to private clients," he added.
Peter Raimondi said: "By accessing private banking and trust services, we will now be in a special position to deliver the full complement of wealth management services to the high net worth marketplace. Both teams share a mutual passion for client service and innovative portfolio management, providing a solid foundation for expansion."
Deutsch said: "This transaction is a natural extension of our wealth management strategy and our intention to combine distinctive wealth management skills with outstanding private banking services, all for the benefit of our clients."
