TD Bank Group acquires US investment company
TD Bank Group said it would acquire investment firm Cowen Inc. of the United States in an all-cash transaction of C$1.67 billion, or C$50 per share of Cowen common stock.
The five major banks said the transaction will help TD Securities, the bank’s investment arm, accelerate its long-term growth strategy in the US “by acquiring a fast-growing, high-quality investment bank.” quickly with outstanding talent and highly complementary products and services.”
TD said that once the transaction closes, Chairman Cowen and CEO Jeffrey Solomon will join TD Securities’ senior leadership.
To provide the capital needed for the transaction, TD said it sold 28.4 million non-voting common shares of The Charles Schwab Corporation for approximately $1.9 billion, reducing the TD’s ownership from about 13.4% to 12.0%.
TD said it expects to achieve total sales of CAD 385 million to CAD 450 million by the third year after the contract closes.
The transaction, approved by the boards of TD and Cowen, is expected to close in the first quarter of 2023, and is subject to customary closing conditions.