CIBC to ink $200-mil­lion deal

Cana­dian bank to buy Chicago-based wealth man­age­ment firm

The Guardian (Charlottetown) - - BUSINESS -

CIBC has agreed to pay up to US$200 mil­lion in stock and cash to ac­quire Geneva Ad­vi­sors, a pri­vate wealth man­age­ment firm head­quar­tered in Chicago.

The Toronto-based bank (TSX:CM) says Geneva Ad­vi­sors will build on its re­cent acquisition of Pri­vate Ban­corp in a deal val­ued at about US$5 bil­lion.

Geneva has about US$8.4 bil­lion in as­sets un­der man­age­ment and 100 em­ploy­ees.

CIBC has agreed to pay US$135 mil­lion when the deal closes and an ad­di­tional US$65 mil­lion con­tin­gent on per­for­mance tar­gets. It ex­pects 25 per cent of the pur­chase price to be in cash and 75 per cent in CIBC com­mon stock.

The Cana­dian bank says the deal is ex­pected to close in its fourth quar­ter, sub­ject to the cus­tom­ary clos­ing con­di­tions, in­clud­ing reg­u­la­tory ap­provals.

Once the trans­ac­tion is com­pleted, CIBC will have about US$50 bil­lion in as­sets un­der ad­min­is­tra­tion in the United States.

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