Randy Riesling | Toronto Star | Getty Images
Canada’s Toronto Dominion Bank will buy New York-based boutique investment bank Cowen in a $1.3 billion all-cash deal to boost its presence in the fast-growing U.S. market.
Cash-rich Canadian banks have been on a shopping spree in the United States in recent months as they try to find growth away from their home turf, where the Big Six banks already control nearly 90 percent of the market.
The deal, announced Tuesday, values each Cowen share at $39, representing a premium of nearly 10% to the company’s last closing price. Cowen shares rose 8% in premarket trading.
Cowen was founded more than a century ago and offers investment banking and brokerage services to its clients.
Earlier this year, TD signed its biggest deal when it agreed to buy regional US bank First Horizon for $13.4 billion to expand into the Southeast region of the country.
The companies expect the deal to close in the first quarter of 2023.
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