CIBC Moves to Acquire PrivateBancorp

Banking, finance, and taxes

Published: June 29, 2016 10:22 am

Last Updated: January 13, 2020 6:14 am

PrivateBancorp, Inc. (NASDAQ: PVTB) is making a solid gain on Wednesday following its most recent deal to be acquired. The company has entered into a definitive agreement to be acquired by Canadian Imperial Bank of Commerce (NYSE: CM) in a cash and stock transaction.

Ultimately, CIBC will pay $18.80 in cash and 0.3657 of a CIBC common share for each share of PrivateBancorp common stock. Based on the June 28 closing price of CIBC’s common shares on the NYSE ($77.11), the total transaction value is roughly $3.8 billion or $47.00 per share of PrivateBancorp common stock at the announcement.

The transaction is expected to close in the first calendar quarter of 2017, but is still subject to approval by PrivateBancorp’s shareholders and by regulators.

Victor G. Dodig, President and CEO of CIBC, commented:

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.

Larry Richman, President and CEO of PrivateBancorp, added:

Our team has built a premier commercial and private banking business. We believe this transaction allows us to not only continue our success but to achieve even more as our clients benefit from CIBC’s financial strength, and our employees become part of a respected North American organization that shares our values and is strategically positioned for long-term growth. We look forward to extending U.S. banking services to CIBC’s Canadian clients and Atlantic Trust’s private wealth clients, in addition to exploring mutual growth opportunities going forward.

Shares of PrivateBancorp were recently trading up 22% at $43.97. The stock has a consensus analyst price target of $43.42 and a 52-week trading range of $31.18 to $45.79.

Shares of CIBC were last trading down 3.6% at $74.35, with a consensus analyst price target of $74.18 and a 52-week trading range of $56.29 to $82.60.

The Average American Has No Idea How Much Money You Can Make Today ^(Sponsor)

The last few years made people forget how much banks and CD’s can pay. Meanwhile, interest rates have spiked and many can afford to pay you much more, but most are keeping yields low and hoping you won’t notice.

But there is good news. To win qualified customers, some accounts are paying almost 10x the national average! That’s an incredible way to keep your money safe and earn more at the same time. Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 3.80% with a Checking & Savings Account today Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.

Click here to see how much more you could be earning on your savings today. It takes just a few minutes to open an account to make your money work for you.

Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 4.00% with a Checking & Savings Account from Sofi. Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.

¹https://www.fdic.gov/national-rates-and-rate-caps