Canada's TD Bank will buy US brokerage Cowen in a $1.3 billion deal - prologiseurope

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

The TD Bank logo is seen atop 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 expand its presence in U.S. high-growth markets.

Capital-rich Canadian banks have been on a shopping spree in the United States in recent months as they try to find growth from their home turf, where the big six already control nearly 90% of the market. Read more

The deal, announced Tuesday, values ‚Äč‚Äčeach Cowen share at $39, representing a nearly 10% premium to the company’s last close. Cowen shares rose 8% in premarket trading.

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Founded more than a century ago, Cowen offers its clients investment banking and brokerage services.

Earlier this year, TD signed its biggest deal ever when it agreed to buy regional U.S. bank First Horizon ( FHN.N ) for $13.4 billion to expand in the Southeast.

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

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Manya Saini reports in Bengaluru; Editing by Aditya Soni

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