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  • Seller
  • Buyer
  • Type
  • Date Announced
  • Seller AUM
  • Davidson Capital Management
  • Boston Private Financial Holdings, Inc.
  • Wealth Management Firms
  • December 11, 2007
  • $1 Billion

Seller Details

Davidson Capital Management consists of two organizations that play specific roles implementing comprehensive wealth management solutions for its clients. Davidson Trust Company, chartered by the Commonwealth of Pennsylvania in 1989, was established to serve client needs for investment counsel and personalized fiduciary services. DTC concentrates on the coordination of the investment, tax and fiduciary aspects of wealth management. Davidson Investment Counselors was founded in 1974 and is a registered investment adviser. The seasoned equity and fixed income investment disciplines provide clients with a conservative, long-term approach to investing in the financial markets.

Buyer Details

Boston Private is a financial services company that owns independently operated affiliates located in key geographic regions of the U.S. Boston Private's affiliates offer private banking, wealth advisory and investment management services to the high net worth marketplace, selected businesses and institutions. The Company's strategy is to enter new markets primarily through selected acquisitions, and then expand its wealth management business by way of organic growth. It makes investments in mid-size firms in demographically attractive areas, forming geographic clusters that represent the firm's core competencies in the three industry segments. Boston Private provides continuing assistance to its affiliates with strategic matters, marketing, compliance and operations.

Transaction Summary

The acquisition of Davidson allows Boston Private to enter the affluent Philadelphia Main Line area with a solid wealth management organization. James M. Davidson, the founder and current CEO of Davidson, will continue as the firm's Chairman. Alvin A. Clay III, a veteran Philadelphia wealth management executive, will purchase a minority interest in the firm and will be named Davidson's CEO. Under the terms of the agreement, Boston Private will acquire a 70% interest in the Davidson Capital Management. The remaining 30% will be owned by Jim Davidson, Al Clay and the other senior executives of Davidson Capital Management. The Company will pay 50% of the total consideration at the close and the remaining 50% over a 3 year period. The amount of future payments is tied to the growth of Davidson.

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