06/29/2016 08:21 EDT

CIBC To Buy PrivateBancorp, A Chicago-Based Bank, In $4.9-Billion Deal

PrivateBancorp has 1,200 employees and a presence in 11 U.S. markets.

TORONTO — CIBC is offering to buy Chicago-based PrivateBancorp, Inc. in a friendly deal valued at C$4.9 billion, or US$3.8 billion.

PrivateBancorp has about 1,200 employees and a presence in 11 U.S. markets in addition to Chicago.

CIBC says it's offering a combination of cash and CIBC shares (TSX:CM) worth about US$47 per share to buy the U.S. company, which is listed on the Nasdaq stock market.

victor dodig cibc

CIBC CEO Victor Dodig says the acquisition will give the bank's Canadian clients more opportunities to bank in the U.S. (Photo: The Canadian Press/Jeff McIntosh)

The deal requires various approvals, including from the Chicago bank's shareholders.

The Toronto-based bank says the current president and CEO of PrivateBancorp will remain in those positions and become head of CIBC's U.S. region.

CIBC's president and chief executive, Victor Dodig, says that the acquisition would provide more opportunities for its Canadian clients to bank across borders and to offer more services to its current clients in the United States.

PrivateBancorp has about US$17.7 billion of assets under management.

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