Wednesday, October 8, 2025

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TD Bank Buys US Investment Bank Cowen for $1.3 Billion

Canadian-based Toronto Dominion Bank (TSX: TD) is expanding its presence even further into the US economy, this time by purchasing New-York based investment bank Cowan (NASDAQ: COWN) for US$1.3 billion.

The cash deal, which amounts to around CAD$1.67 billion, marks the second major US purchase by TD, as the Canadian bank makes further efforts to take advantage of America’s high-growth financial markets. TD is expected to pay for the boutique investment bank using some of the $1.9 billion it received from selling 28.4 million shares of Charles Schwab, which subsequently reduced its holdings from 13.4% to 12%.

The acquisition is expected to close sometime in the first quarter of 2023, but should the deal fall through, TD will be required to pay $42.25 million in termination fees. The transaction is expected to be approved by board members from both TD and Cowan, with the Canadian bank forecasting to reach revenue synergies anywhere between CAD$385 million and CAD$450 million, and integration costs of around $450 million three years after the deal is completed.

TD’s deal puts Cowan’s share price at $39, marking a 10% increase from its previous closing price. Shares of Cowan jumped nearly 9% following the announcement on Tuesday, while TD shares slumped nearly 1.5%.


Information for this briefing was found via TD. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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