The Canadian lender is acquiring the company for 515p per share in cash, a 62% premium to Brewin Dolphin’s last closing share price.
The deal is expected to close by end of the third quarter of 2022, subject to shareholder and regulatory approval.
Brewin Dolphin, which provides discretionary wealth management in the UK and Ireland, had assets under management (AuM) of £59bn at end of last year.
The firm has a network of over 30 offices.
RBC Wealth Management, RBC Insurance and RBC Investor and Treasury Services group head Doug Guzman said that the acquisition will provide the bank with ‘an exceptional platform to significantly transform its wealth management business’ in the UK.
According to Guzman, the deal will also bolster RBC Wealth Management’s market position in the UK and Ireland.
He said: “By combining two highly complementary businesses, we will increase the depth and breadth of our services and position the combined business as a premier integrated wealth management provider to private and institutional clients.”
Commenting on the deal, Brewin Dolphin CEO Robin Beer said: “The Brewin Dolphin Board is pleased to recommend the offer by RBC in the interests of our shareholders, our clients, our people and our business partners.
“Building on the strong organic growth that we have achieved to date, the combined businesses will create an attractive platform for future growth. As part of RBC we would be able to provide our clients with a broader range of products and services, and expand our distribution channels through leveraging RBC’s global presence.”
The deal comes at a time when UK’s wealth management industry witnesses increased consolidation.
Last year, Raymond James signed a deal to acquire British wealth manager Charles Stanley through its subsidiary Raymond James UK Wealth Management.