The market was modestly higher on Tuesday morning, but shares of wealth management firm Boston Private Financial Holding (NASDAQ: BPFH) were on fire. As of 10:25 a.m. EST, the financial stock was up 31%.
The reason for the move is that Boston Private is the latest merger and acquisition (M&A) target in the financial sector. SVB Financial Group (NASDAQ: SIVB) , parent of Silicon Valley Bank, has agreed to acquire Boston Private. SVB is paying about $10.94 per share for the wealth management firm in a cash-and-stock deal. Boston Private shareholders will receive $2.10 in cash plus 0.0228 shares of SVB for each of their shares upon the deal's closing, which is expected to happen in mid-2021.
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Here's Why Boston Private Financial Stock Is Soaring Today