Canada’s Toronto Dominion Bank will buy New York-based investment bank Cowen in a $1.3 billion cash deal to boost its presence in the high-growth U.S. market. Cash-rich Canadian banks have been on a buying spree in the United States in recent months as they try to find growth away from home, where the Big Six already control nearly 90% of the market. The deal announced Tuesday values each Cowen share at $39, representing a premium of nearly 10% to the company’s last closing price. Cowen shares rose 8% in premarket trading. Founded more than a century ago, Cowen provides investment banking and brokerage services to its clients. Earlier this year, TD inked its biggest deal ever when it agreed to buy regional U.S. bank First Horizon for $13.4 billion to expand into the southeast region of the country. The companies expect the deal to close in the first quarter of 2023.
