Canadian Imperial Bank of Commerce to buy PrivateBancorp for $3.8 bn

Canadian Imperial Bank of Commerce (CIBC) today struck a deal to buy PrivateBancorp Inc for about $3.8 billion in cash-and-stock in order to expand its business in the US.

CIBC is offering to pay $47 per share, a premium of about 31 per cent, based on yesterday closing price of the two banks.

CIBC said that the acquisition will help it deliver US banking services to its existing Canadian personal and business banking clients, accept deposits in the US, and provide commercial and private banking services to the clients of Atlantic Trust - a leading US private wealth management firm serving high net worth families, private foundations and endowments.

Atlantic Trust was acquired by CIBC in 2014.

Chicago-based PrivateBancorp is a middle market commercial, private banking, and wealth management bank with around 1,200 employees and $17.7 billion in assets.

PrivateBancorp's clients include middle market companies, as well as business owners, executives, entrepreneurs and families.  PrivateBancorp also offers specialty banking services to clients in specific industry segments, including healthcare and technology.

"Acquiring PrivateBancorp accelerates our strategy of building a strong, innovative and client-focused bank by creating opportunities to bank across borders for our Canadian clients, and offering more services to our private wealth clients at Atlantic Trust," said Victor Dodig, CIBC president and CEO.

CIBC is Canada's fifth-largest bank with 11 million personal banking and business clients.

It operates through three major business units - Retail and Business Banking, Wealth Management and Capital Markets.