American banking major Silicon Valley bank will acquire Boston Financial for $900 million through stocks and cash, media reports said. The move marks a significant push by the bank into the wealth management segment.
Silicon Valley Bank has been considered a reputed bank and has been friendly towards startups, ventures and private equity investors and the new deal has paved the path for them to expand their business. The bank has formed its wealth advisory business nine years ago and now it has been pushing more into the wealth management space critically for several years.
Furthermore, Boston Financial was founded in 1987 and has assets worth $16.3 billion under its belt compared to Silicon Valley banks’ $1.4 billion in related assets.
Greg Becker, president and CEO, Silicon Valley Bank, told the media, “Our clients rely on us to help increase the probability of their success — both in their business and personal lives.”
The shareholders of Boston Financial will receive 0.0228 shares of SVB common stock and $2.10 of cash for each of their shares, as part of the deal.
Yvonne Butler along with Anthony DeChellis, who has been the CEO of Boston Private for the last two years will handle the combined private banking and wealth management business. Mr Anthony DeChellis previously served as the president of OurCrowd before joining Boston Private and has served as the CEO of Credit Suisse Private Banking (Americas).
It is reported that the stocks of Silicon Valley Bank surged more than 60 percent in the last three years and has performed well amid the pandemic.