Canadian Imperial Bank of Commerce (CIBC) has agreed to acquire Chicago-based PrivateBancorp and its subsidiary, The PrivateBank- a middle market commercial bank with $17.7bn, in a deal worth $3.8bn.

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PrivateBancorp is a middle market commercial, private banking and wealth management firm with community banking capabilities. It operates in 11 US markets and has nearly 1,200 employees.

CIBC said that the acquisition will allow it to deliver US banking services to its existing Canadian personal and business banking clients.

It will also allow the lender to provide commercial and private banking services to the clients of Atlantic Trust, a private wealth management firm acquired by CIBC in fiscal 2014.

CIBC president and CEO Victor Dodig said: "Acquiring PrivateBancorp accelerates our strategy of building a strong, innovative and client-focused bank by creating opportunities to bank across borders for our Canadian clients, and offering more services to our private wealth clients at Atlantic Trust."

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"We see this as a long-term strategic transaction that creates a platform for growth across North America, expands and deepens our client relationships, and creates a broader, diversified, and more valuable CIBC for our shareholders, our clients, and our team.

"With a shared focus to be number one in client relationships, we will work with PrivateBancorp’s President and CEO, Larry Richman, and his team as we capitalize on the long-term opportunities ahead for our organizations, people, clients, business partners and the communities we serve," Dodig added.

PrivateBancorp president and CEO Larry Richman said: "We look forward to extending U.S. banking services to CIBC’s Canadian clients and Atlantic Trust’s private wealth clients, in addition to exploring mutual growth opportunities going forward.

"Both CIBC and PrivateBancorp are committed to investing in the community and will work together to continue PrivateBancorp’s existing programs and seek opportunities to further make a difference in this important area."

Subject to approval of customary closing conditions, the deal is expected to be completed in the first quarter of 2017.