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TD to Buy Cowen for $1.3 Billion to Bulk Up Capital Markets

  • Canada’s No. 2 bank addresses relative weakness with deal
  • Firm has underperformed rivals amid First Horizon concerns
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Photographer: Christinne Muschi/Bloomberg
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Toronto-Dominion Bank agreed to buy US brokerage Cowen Inc. for $1.3 billion in cash, bulking up its presence in American capital markets just months after striking a historic deal to expand its retail operations in the country.

Toronto-Dominion agreed to pay $39 a share, according to a statement Tuesday. The acquisition is likely to be “modestly accretive” to adjusted earnings per share next year, the Toronto-based company said. Bloomberg News reported last month that the bank was weighing the deal.