Boston Private shareholders have approved a merger agreement with SVB Financial Group despite dissent from an activist investor.
Earlier this year Silicon Valley Bank (SVB) agreed to acquire Boston Private Financial Holdings in a deal that valued Boston Private at approximately $900 million, based on shareholders receiving 0.0228 SVB shares and $2.10 per share they owned.
However, the deal was opposed by HoldCo Asset Management, which owns 4.9% of shares in Boston Private. In April, it urged shareholders to vote against the deal after a “cautionary” report by Institutional Investor Services (ISS) raised several concerns relating to the transaction process and valuation of the planned deal.
It later claimed SVB was undervaluing Boston Private, in an open letter to president and CEO Greg Becker. SVB said it would not increase its bid.
Boston Private put the deal to shareholders on April 27 but adjourned the meeting until May 4 to give more time to “solicit additional proxies from shareholders to approve the merger agreement” and allow them to consider recent quarterly updates from both banks.
Following the deal, the combined private bank and wealth management assets under management for SVB will be $17.7 billion.
“We are excited about our progress toward completing the transaction and believe that the combined company will be well-positioned to provide an enhanced experience for clients and deliver long-term value for shareholders,” said Anthony DeChellis, Boston Private’s chief executive officer and president.
Boston Private will file additional information regarding the results of the meeting with the Securities and Exchange Commission.
The transaction is expected to close in mid-2021, subject to regulatory approvals.