SVB Financial Group and its subsidiary, Silicon Valley Bank, entered into a merger agreement to acquire Boston-based Leerink Holdings, the parent company of healthcare and life science-focused investment bank Leerink Partners. The new entity, SVB Leerink, will operate as a wholly-owned subsidiary of SVB Financial.
SVB will acquire Leerink for $280 million in cash up front to the unitholders and, in addition, will provide a retention pool for employees of $60 million to be paid over five years.
The deal has been approved by Leerink’s unitholders and the transaction is expected to close during the first quarter of 2019.
“SVB and Leerink share a focus on providing financing and strategic advice at critical stages in a company’s growth and development,” said Greg Becker, CEO of SVB Financial and Silicon Valley Bank. “Together, we will deliver a complete capital markets offering – including debt, convertible debt and equity financing – and advisory services – including mergers & acquisitions – for private and public healthcare and life science companies. Leerink is a best-in-class firm and we look forward to welcoming our Leerink colleagues to SVB.”
Jeff Leerink, chairman and CEO of Leerink, will continue to serve as CEO of SVB Leerink, while James Boylan, president and head of Investment Banking at Leerink Partners, will serve in the same role at SVB Leerink The rest of the leadership team at Leerink Partners will remain in place and will run the business in much the same capacity as it operates today.
“This merger represents an important step forward for our firm as we continue to strive to be an indispensable company-building partner to our expanding global client base,” said Leerink. “SVB and Leerink share a strong client-focused culture, uniquely aligned on building long-term client relationships.”
SVB Leerink will continue to provide broad coverage across all subsectors of healthcare, while providing SVB with a diverse and growing revenue stream.
Keefe, Bruyette & Woods acted as financial advisor to SVB in the transaction, while Sullivan & Cromwell served as its legal counsel. Sandler O’Neill + Partners acted as financial advisor to Leerink and Skadden, Arps, Slate, Meagher & Flom as legal counsel.
