Royal Bank of Canada today announced an agreement to acquire the private banking business of Barclays in the Americas with offices in New York and Miami.

The acquisition will increase the client base of Royal Bank of Canada Global Private Banking in the Americas region by approximately 10%, with an additional US$2.9 billion of client assets in the form of custody, deposits, loans and portfolio management.

The cost to Royal Bank of Canada is not expected to exceed US$90 million with partial payment on the closing date and the balance depending upon performance.

The acquisition is subject to U.S. regulatory approval and customary closing conditions, and is expected to be completed by summer.

“One of our goals is to build and expand specialized global financial services in those areas where we have a competitive advantage,” said Gord Nixon, president and CEO, Royal Bank of Canada. “This transaction reflects our strategy of achieving growth through acquisitions that ‘bolt-on’ to our existing operations.”

Clients of Barclays affected by this transaction are located mainly in the U.S., Latin America, and the Caribbean. They will be served from Royal Bank of Canada Global Private Banking offices in New York, Miami and Toronto, with linked international services from Cayman, London, Jersey and Geneva. Royal Bank of Canada Global Private Banking has offices in each of these locations, and has had a presence in the U.S., Latin America and the Caribbean for more than 100 years.

A week ago, Royal Bank said it was shifting its global private banking operations in Bermuda to the Cayman Islands.