Canada’s TD Bank to buy US brokerage Cowen in $1.3 billion deal

The TD bank logo is seen on top of the Toronto Dominion Canada Trust Tower in Toronto, Ontario, Canada March 16, 2017. Picture taken March 16, 2017. REUTERS/Chris Helgren/File Photo

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Aug 2 (Reuters) – Canada’s Toronto Dominion Bank (TD.TO) will buy New York-based boutique investment bank Cowen (COWN.O) in a $1.3 billion all-cash deal to boost its presence in the high-growth US 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% of the market. read more

The deal announced on Tuesday values ​​each share of Cowen at $39, representing a premium of nearly 10% to the company’s last closing price. Cowen shares rose 8% in premarket trading.

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Cowen was founded more than a century ago and offers investment banking and brokerage services to its clients.

Earlier this year, TD signed its largest-ever deal when it agreed to buy regional US bank First Horizon (FHN.N) for $13.4 billion to expand in the southeastern region of the country.

The companies expect the deal to close in the first quarter of 2023.

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Reporting by Manya Saini in Bengaluru; Editing by Aditya Soni

Our Standards: The Thomson Reuters Trust Principles.

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