Wealth manager Brewin Dolphin is set to be acquired by the Royal Bank of Canada (RBC) in a deal valuing the business at £1.6bn.
The firm - which has offices in Edinburgh, Glasgow, Aberdeen and Dundee - has recommended an offer to shareholders by subsidiary RBC Wealth Management.
The two firms announced they had reached agreement on the terms of a recommended all cash offer, through which shareholders will be entitled to 515 pence per Brewin Dolphin share.
The deal values Brewin Dolphin at 2.8% of its £55bn assets under management, as of 28 February.
In a stock market announcement explained that directors have been advised by Barclays and Lazard as to the financial terms of the acquisition, and consider them to be fair and reasonable.
RBC stated that it is strategically focused on opportunities to grow its wealth management operations in its core markets of North America and Europe, with the deal representing “an exciting strategic opportunity” to combine its existing wealth business in the UK and the Channel Islands with Brewin Dolphin to create a business with £64bn of assets under management.
With a heritage which traces back to 1762, originally as a provider of stock-broking services, Brewin Dolphin manages money for around 80,000 clients and has more than 2,000 employees across its office network.
Robin Beer, chief executive officer of Brewin Dolphin, said: “Building on the strong organic growth that we have achieved to date, the combined business will create an attractive platform for future growth.
“As part of RBC we would be able to provide our clients with a broader range of products and services, and expand our distribution channels through leveraging RBC’s global presence.
“We share complementary values which emphasise the importance of long-standing client relationships and an inclusive culture supportive of employees and local communities - our focus will be on maintaining continuity, so that we build on what we have already achieved.”
Doug Guzman, group head of RBC Wealth Management, RBC Insurance and RBC Investor & Treasury Services, said: “The UK is a key growth market for RBC, and Brewin Dolphin provides us with an exceptional platform to significantly transform our wealth management business in the region.
“Both management teams are excited by a shared vision of high quality client service, client-centric culture and the exceptional growth opportunities that we can deliver together.”
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