In a deal that will nearly double its wealth management business, Beverly Hills-based City National Corp. said Friday that it has agreed to buy Convergent Capital Management Inc., a privately held Chicago company with interests in 10 money management firms.
City National is the parent of City National Bank, sometimes known as the "bank to the stars" for its Hollywood roots. It will pay about $41.5 million in cash for Convergent Capital and assume $7.5 million in debt, the companies said.
City National Chairman Russell Goldsmith said the acquisition is expected to be neutral to earnings in the first year and add to them in subsequent years.
City National previously has said it wanted to acquire firms that handle investments for wealthy people and institutions. Six of Convergent Capital's firms focus on individuals and four serve primarily institutions. The firms include Clifford Associates and Philip V. Swan Associates in Pasadena, as well as others in San Francisco, Hawaii, Texas, Illinois and Michigan.