Last month Canada's fifth-biggest lender completed the $5
billion acquisition of Chicago-based PrivateBancorp, its biggest
ever, as it diversifies from its home market.
Geneva Advisors, which focuses on high-net-worth clients, has
$8.4 billion in assets under management and a staff of about
100.
"This investment will add scale in key markets where we can
offer clients differentiated, high-touch service," said Larry
Richman, CIBC's group head, U.S. region.
CIBC will pay an initial $135 million and a further $65 million
if performance conditions are met, with 25 percent in cash and
the rest in shares.
"Coming almost immediately off the heels of the PrivateBancorp
purchase closing, this could raise some concerns that CIBC could
be back on the acquisition trail too soon," said Barclays
analyst John Aiken.
CIBC Chief Executive Officer Victor Dodig said last month that
the bank would focus for the next two years on integrating
PrivateBancorp but could make some acquisitions in wealth
management.
(Reporting by Matt Scuffham)
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