Silicon Valley Bank Mergers and Acquisitions Presentation Deck
Financially attractive transaction
Consideration
Transaction value
Key pricing ratios
TBV per share
accretion
EPS accretion
IRR
Cost savings
Revenue synergies
Restructuring costs
Preliminary fair
value marks²
Intangible assets²
Leadership and
governance
Closing conditions
Estimated closing
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Detailed transaction summary
Fixed 0.0228x exchange ratio¹; -80% of consideration²
Fixed cash consideration of $2.10 per share; ~20% of consideration²
Boston Private shareholders will own 3.5% of SVB
Approximately $900 million, $10.94 per Boston Private share³
1.2x Price / TBV per share4
17x Price / 2021E Consensus median EPS
Immediately accretive at close4,5
Low single digit EPS accretion
15+%5
Estimated 20% of Boston Private 2020E non-interest expenses, phased in 25% in 2021, 75% in 2022 and 100% thereafter
Identified, but not included in financial impact
-$200 million pre-tax on growth investments and integration costs (includes estimated $65 million technology systems integration)
2.25% credit mark, split 60% Purchase Credit Deteriorated and 40% Non-Purchase Credit Deteriorated
$64 million positive pre-tax net rate mark ($14 million impact to equity)?
Core deposit intangible equal to 0.25% of Boston Private's non-time deposits, amortized using sum-of-years digits over 7 years
Wealth management relationship intangible of $75 million, amortized using sum-of-years digits over 10 years
Anthony DeChellis (current CEO of Boston Private) and Yvette Butler (current Head of Private Banking and Wealth Advisory at SVB) will
lead the combined private banking and wealth management business
Boston Private shareholder approval
Customary regulatory approvals and conditions
Mid-2021
Source: Boston Private Filings, S&P Global Market Intelligence and Bloomberg.
1. Exchange ratio based on SVB 10-day volume-weighted average stock price of $367.91 as of December 31, 2020, implying $10.50
per Boston Private share.
2. As of January 4, 2021. Subject to change.
3. Based on SVB closing stock price of $387.83 as of December 31, 2020.
4. Boston Private TBV per share is a non-GAAP financial measure. See "Use of Non-GAAP Financial Measures" for further information.
5. Includes 100% of restructuring costs at close.
6. Excludes restructuring costs.
7. Consists of preliminary asset and liability rate marks including $31.5 million of AOCI converted into a securities rate mark.
Acquisition of Boston Private
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