The unit will be renamed Leerink Partners (its name before SVB’s acquisition). MoffettNathanson LLC, the company’s research business will remain part of SVB Financial Group, as it is not included in the transaction.
The bidder group led by Leerink, who is chief executive of SVB Securities will acquire the business for cash, repayment of an inter-company note and a 5% equity instrument.
“With the strong financial backing from The Baupost Group, the firm is extremely well positioned to continue to build on its leadership position in healthcare investment banking”, the company said in a statement.
The move comes after management of SVB Securities was said to have been exploring buying back the unit after Silicon Valley Bank, the former parent of SVB Financial (OTCPK:SIVBQ), fell into FDIC receivership in March.
A court hearing regarding the proposed deal is scheduled for June 29.
The deal will be subject to final confirmation by the US Bankruptcy Court and regulators as well as other customary closing conditions.