BPFH Stock Price Increases 35.88%: Why It Happened

By Amit Chowdhry ● January 6, 2021
  • The stock price of Boston Private Financial Hldg Inc (NASDAQ: BPFH) has increased by 35.88% as it went from a previous close of $8.39 to $11.40 on January 5. This is why it happened.

The stock price of Boston Private Financial Hldg Inc (NASDAQ: BPFH) has increased by 35.88% as it went from a previous close of $8.39 to $11.40 on January 5. One of the biggest triggers for the stock price increase has to do with an announcement that Silicon Valley Bank parent company SVB Financial Group (NASDAQ: SIVB) is going to buy Boston Private Financial Hldg Inc (NASDAQ: BPFH), the parent company of Boston Private Bank & Trust Company. The combined private bank and wealth management assets under management are going to be about $17.7 billion.

And under the terms of the merger agreement, Boston Private shareholders are going to receive 0.0228 shares of SVB common stock and $2.10 of cash for each Boston Private share they own, representing a total consideration value of approximately $900 million based on SVB’s closing stock price of $387.83 on December 31, 2020.

KEY QUOTES:

“Our clients rely on us to help increase the probability of their success – both in their business and personal lives. Boston Private’s experienced and well-regarded team, robust service offering, and advanced technology platform will significantly bolster our private bank and wealth management capabilities and enhance our ability to offer products and services tailored to the needs of founders, executives and investors.”

— Greg Becker, President and CEO of SVB Financial Group

“Together, SVB and Boston Private will be well-positioned to grow and scale our business, leveraging SVB’s deep client relationships and broad reach across the innovation economy to capture a greater share of the wealth management market. We look forward to working together to support our clients as they pursue the goals they have for their businesses, families and legacies.”

— Anthony DeChellis, CEO of Boston Private