Canadian Imperial Bank of Commerce (CIBC) has agreed to acquire Geneva Advisors, a Chicago-based private wealth management firm, in a cash-stock deal worth up to $200m.
The Toronto-based lender will pay $135m upon deal closing and an additional $65m based on performance conditions. The bank said that 25% of the deal consideration will be paid in cash while the remaining will be in CIBC common shares.
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The transaction is slated to be completed in the fourth quarter of fiscal 2017, subject to regulatory approvals.
Geneva Advisors, which manages $8.4bn in assets and employs around 100, will become part of CIBC Atlantic Trust Private Wealth Management post completion of the deal.
Following deal closing, CIBC’s assets under administration in the US will stand at around $50bn. CIBC also expects the deal to lower its common equity tier 1 capital ratio by nearly six basis points.
CIBC group head for US region Larry Richman said: “Acquiring Geneva Advisors will further strengthen CIBC Atlantic Trust Private Wealth Management, led by our CEO of this business and industry veteran Jack Markwalter. This investment will add scale in key markets where we can offer clients differentiated, high-touch service.”
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