July 25, 2014 | Updated 12:00am

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Wednesday, July 16, 2014, 11:36am

Boston Private To Acquire Florida-Based Investment Firm

BPF-LOGO CMYKBoston Private Financial Holdings (BPFH), the holding company for Boston Private Bank and Trust Co., will acquire a Florida-headquartered investment advisory firm with more than $4.3 billion in assets under management, the company announced today.

The deal is expected to close in the fourth quarter, pending regulatory approvals, and Boston Private expects to pay approximately $60 million in cash and stock for Banyan Partners LLC upon closing. Banyan Partners will also have the opportunity to receive additional consideration over a two-year earn-out period. The Banyan acquisition will double Boston Private's own assets under management, presently $4.5 billion, to $9 billion when the deal closes.

Boston Private Financial Holding's total client assets in its wealth management businesses, including trust, are expected to expand to approximately $30 billion of total client assets. On a pro forma basis, the addition of Banyan is expected to result in an increase in the consolidated, non-spread based revenue to approximately 45 percent of total revenue, significantly advancing the company towards its stated aim of creating a more fee-weighted revenue stream.

Clayton G. Deutsch, president and CEO of BPFH, and Mark Thompson, president and CEO of Boston Private Bank & Trust, said the acquisition will bring Boston Private's reach into several desirable geographic markets. Banyan, which is headquartered in Palm Beach Gardens, Fl., has other locations in Boston, New York, Miami, Naples, Atlanta, Wisconsin, Texas and California.

As part of the deal, Boston Private will create a new, wholly-owned subsidiary combining its own wealth management services with those of Banyan Partners, which Deutsch expects to be an added value for Boston Private's clients.

"High net-worth individuals and clients are split almost 50/50 between clients who prefer their wealth management and wealth advice to be delivered in a way that's tightly coupled with high quality private banking services" and those who prefer wealth management to be discrete from their private banking services, Deutsch said.

"We want to deliver value to both kinds of clients. I think having Banyan Partners combined with Boston Private wealth management lets us do both," he said.

Cultural fit was also a key consideration, Deutsch and Thompson said.

When the deal closes, Peter Raimondi, Banyan Partners' founder and CEO, will become CEO of the new wealth management company and key members of both company's management teams will assume senior roles in the new entity. Boston Private Bank's Executive Vice President John J. Sullivan will be the new entity's chief business development officer and R. Thomas Manning, Banyan Partner's chief investment officer, will become CIO.

"A big part of why we're making this commitment and why we're spending this much money is we have a lot of confidence in Peter, and in John," he said. "The two of them are going to work really well together. These are two really talented executives, these are two really different executives, and I think they're going to be a terrific duo."

Thompson seconded that, saying, "We feel quite confident that we're going to have a good strong cultural fit between the two organizations."

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