(Toronto) TD Bank said on Tuesday it would acquire U.S. investment firm Cowen in an all-cash deal valued at US$1.3 billion, or US$39 for each common share of Cowen.
Posted at 11:00 a.m.
The bank said the transaction would help TD Securities, the bank’s investment arm, accelerate its long-term U.S. growth strategy “by acquiring a leading investment bank quality and fast-growing, with great talent and highly complementary products and services.”
Upon completion of the transaction, Cowen President and CEO Jeffrey Solomon will join senior management at TD Securities.
To provide capital for the transaction, TD said it sold 28.4 million non-voting common shares of The Charles Schwab Corporation for proceeds of approximately $1.9 billion. This decreases TD’s stake in Schwab to 12.0%, down from around 13.4% previously.
TD expects to realize revenue synergies of US$300 million to US$350 million by the third year after the deal closes.
The transaction, which has been approved by the Boards of Directors of TD Bank and Cowen, is expected to close in the first quarter of calendar year 2023 and is subject to customary closing conditions.