Canadian Imperial Bank of Commerce (CIBC) has increased its bid for the acquisition of PrivateBancorp, a Chicago-based middle market commercial, private banking and wealth management firm.

Under the new arrangement, PrivateBancorp stockholders would receive $27.20 in cash and 0.4176 of a CIBC share for each of their shares.

The transaction is now worth nearly $4.9bn or $60.43 a share, which represents a 26% increase from the price originally announced in June 2016. CIBC originally agreed to buy PrivateBancorp for $3.8bn.

The amended agreement terms have secured the nod from the boards of directors of both the companies.

The deal is now expected to close in June 2017, subject to approvals by PrivateBancorp stockholders and regulators in the US and Canada.

PrivateBancorp board of directors has recommended that PrivateBancorp stockholders vote in favour of the deal.

CIBC said that the deal “will be accretive to earnings per share within three years of the closing date and to maintain a strong Common Equity Tier (CET) 1 ratio at closing above 10%.”