We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
CIBC (CM) Closes Acquisition of Geneva Advisors for $200M
Read MoreHide Full Article
CIBC (CM - Free Report) recently announced the completion of the buyout of Geneva Advisors, a Chicago-based private wealth management firm. The transaction is expected to be accretive to CIBC’s earnings in fiscal 2019.
Details of the Deal
Per the terms disclosed in July 2017, the deal is valued at $200 million. Of the total value, $135 million was paid at closing, with 25% paid in cash and 75% paid in the form of CIBC common shares. The remaining is contingent on future performance conditions being met.
Geneva Advisors brought with it about $8.6 billion in assets under management and almost 100 employees to CIBC Atlantic Trust Private Wealth Management. They would report to Jack S. Markwalter Jr., Chairman and CEO of CIBC Atlantic Trust.
On completion of the transaction, Larry D. Richman, CIBC Group Head, U.S. Region, and President & CEO, The PrivateBank. said "The combined strengths of our teams, shared client-first approach and high-touch service will further strengthen and position us to grow our private wealth management business in the U.S. and, in particular, our Chicago market.”
Inorganic Expansion Drives Growth
Previously, CIBC had completed the acquisition of The PrivateBank for about $5 billion in June 2017. The deal is expected to be accretive to CIBC’s earnings per share within three years. The company had paid $2.4 billion in cash and roughly 32.3 million of its shares.
Both the acquisitions shall support CIBC’s growth plan in the United States. They helped expand CIBC's private wealth management client base and investment management capabilities. Further, as a result of these successful acquisitions, CIBC now has about $50 billion in assets under administration.
Shares of CIBC have gained 3.7% year to date, underperforming the 15.7% rally of the industry.
Some other stocks worth considering in the same space are Deutsche Bank (DB - Free Report) , HDFC Bank Limited (HDB - Free Report) and Mitsubishi UFJ Financial Group, Inc. . All these stocks carry a Zacks Rank #2 (Buy).
Deutsche Bank’s Zacks Consensus Estimate for current-year earnings was revised 9.8% upward for 2017, in the past 60 days. Also, its share price has increased 11.1% in the past 12 months.
HDFC Bank’s current-year earnings estimates were revised nearly 3% upward, over the past 60 days. Further, the company’s shares have jumped 31.6% in a year.
Mitsubishi UFJ’s Zacks Consensus Estimate for current-year earnings was revised 3.2% upward, over the last 60 days. Moreover, in the past year, its shares have gained 11.8%.
Zacks' 10-Minute Stock-Picking Secret
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
But here's something even more remarkable: You can master this proven system without going to a single class or seminar. And then you can apply it to your portfolio in as little as 10 minutes a month.
Image: Bigstock
CIBC (CM) Closes Acquisition of Geneva Advisors for $200M
CIBC (CM - Free Report) recently announced the completion of the buyout of Geneva Advisors, a Chicago-based private wealth management firm. The transaction is expected to be accretive to CIBC’s earnings in fiscal 2019.
Details of the Deal
Per the terms disclosed in July 2017, the deal is valued at $200 million. Of the total value, $135 million was paid at closing, with 25% paid in cash and 75% paid in the form of CIBC common shares. The remaining is contingent on future performance conditions being met.
Geneva Advisors brought with it about $8.6 billion in assets under management and almost 100 employees to CIBC Atlantic Trust Private Wealth Management. They would report to Jack S. Markwalter Jr., Chairman and CEO of CIBC Atlantic Trust.
On completion of the transaction, Larry D. Richman, CIBC Group Head, U.S. Region, and President & CEO, The PrivateBank. said "The combined strengths of our teams, shared client-first approach and high-touch service will further strengthen and position us to grow our private wealth management business in the U.S. and, in particular, our Chicago market.”
Inorganic Expansion Drives Growth
Previously, CIBC had completed the acquisition of The PrivateBank for about $5 billion in June 2017. The deal is expected to be accretive to CIBC’s earnings per share within three years. The company had paid $2.4 billion in cash and roughly 32.3 million of its shares.
Both the acquisitions shall support CIBC’s growth plan in the United States. They helped expand CIBC's private wealth management client base and investment management capabilities. Further, as a result of these successful acquisitions, CIBC now has about $50 billion in assets under administration.
Shares of CIBC have gained 3.7% year to date, underperforming the 15.7% rally of the industry.
Zacks Rank & Key Picks
Currently, CIBC sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Some other stocks worth considering in the same space are Deutsche Bank (DB - Free Report) , HDFC Bank Limited (HDB - Free Report) and Mitsubishi UFJ Financial Group, Inc. . All these stocks carry a Zacks Rank #2 (Buy).
Deutsche Bank’s Zacks Consensus Estimate for current-year earnings was revised 9.8% upward for 2017, in the past 60 days. Also, its share price has increased 11.1% in the past 12 months.
HDFC Bank’s current-year earnings estimates were revised nearly 3% upward, over the past 60 days. Further, the company’s shares have jumped 31.6% in a year.
Mitsubishi UFJ’s Zacks Consensus Estimate for current-year earnings was revised 3.2% upward, over the last 60 days. Moreover, in the past year, its shares have gained 11.8%.
Zacks' 10-Minute Stock-Picking Secret
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
But here's something even more remarkable: You can master this proven system without going to a single class or seminar. And then you can apply it to your portfolio in as little as 10 minutes a month.
Learn the secret >>