Canadian Imperial Bank of Commerce (CIBC) has inked a definitive agreement with Invesco to acquire Atlantic Trust Private Wealth Management, in a all-cash deal valued at nearly $210m.
Offering integrated wealth management services to high-net-worth individuals, families and foundations, Atlantic Trust with a team of 235 professional manages nearly $20bn in assets behalf of its clients through 12 locations in US.
CIBC senior executive vice-president wealth management group head Victor Dodig said the acquisition allows entry into the US private wealth market, where high-net-worth personal financial assets are growing faster by 50% than the average US household.
"This transaction further enhances our private wealth management offering to high-net-worth clients and is consistent with our acquisition of MFS McLean Budden in Canada," Dodig added.
In August 2012, it acquired MFS McLean Budden’s private wealth business and bought a 41% stake in American Century Investments in 2011 and is focusing to strengthen its wealth management business by acquisitions.
Following the receipt of various regulatory approvals and satisfying customary conditions, the transaction is expected to complete during the second half of 2013 and will be accretive to adjusted earnings per share in fiscal 2014.
CIBC’s Basel III Common Equity Tier 1 ratio is likely to decline by nearly 20 basis points on a pro forma basis as at 31 January 2013, after completion of the transaction.
CIBC delivers an array of financial products and services through its retail and business banking, wealth management and wholesale banking businesses, to individual, small business, commercial, corporate and institutional clients in Canada and globally.
Operating in more than 20 countries, Atlanta-based Invesco offers investment strategies and vehicles to its retail, institutional and high-net-worth clients and had $729.3bn assets as of 31 March 2013.