CIBC (TSX: CM) has entered into a definitive agreement to acquire Atlanta-based Atlantic Trust Private Wealth Management from its parent company, Invesco Ltd. (NYSE:IVZ)
Under the terms of the transaction, CIBC will acquire Atlantic Trust for US$210 million, in an all-cash transaction that is expected to close in the second half of 2013.
CIBC says the acquisition will be accretive to adjusted earnings per share in fiscal 2014.
Atlantic Trust manages approximately US$20 billion in assets on behalf of its clients through 12 cities across the United States. The firm provides integrated wealth management solutions for high-net-worth individuals, families, foundations and endowments through a team of 235 relationship management, investment management, wealth strategies and support professionals.
“The Atlantic Trust acquisition aligns with our strategy to grow our wealth management business in North America,” said Gerry McCaughey, CIBC president and CEO, in release.
“Atlantic Trust provides CIBC with an attractive entry into the U.S. private wealth market, where high-net-worth personal financial assets are growing 50% faster than those of the average U.S. household,” added Victor Dodig, senior executive vice president, CIBC and group head, wealth management.
“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,” said Dodig.
Atlantic Trust, under the leadership of Jack S. Markwalter, Jr., chairman and CEO, was recognized in 2013 by Private Asset Management as the Best Wealth Manager: Long-Term Performance (3 years) among firms with more than US$5 billion in assets under management and has been recognized by Barron’s as one of the Top 40 Wealth Managers.