CIBC to Buy Privatebancorp in Deal Valued at $3.8 BillionMarthe Fourcade
Canadian Imperial Bank of Commerce agreed to buy PrivateBancorp Inc. and one of its units to boost its U.S. presence.
CIBC will pay $18.80 in cash and 0.3657 of a CIBC common share for each PrivateBancorp share, it said in a statement on Wednesday. Based on the June 28 closing price of CIBC’s stock, the transaction value is about $3.8 billion, it said.
PrivateBancorp of Chicago is a commercial bank with $17.7 billion in assets, with private banking and wealth management capabilities, according to CIBC.
The deal will allow CIBC to offer Canadian customers U.S. banking services, to accept deposits there, and to provide commercial and private banking services to the clients of Atlantic Trust, a U.S. wealth management firm it bought about two years ago, CIBC said.