HSBC USA Inc has signed an agreement to sell Wealth & Tax Advisory Services USA Inc (‘WTAS’) to participating WTAS managing directors in a management buy-out. WTAS provides tax advisory services in the United States to high net worth individuals including HSBC Private Bank customers. The transaction will enable WTAS to pursue a broader expansion strategy.

In consideration for the sale, HSBC will receive US$5 million in cash and deferred notes with a principal amount totalling US$60.85 million. Under the agreement, HSBC has an option to acquire 19.9 per cent of the equity of WTAS, subject to certain conditions and dilution as new managing directors join WTAS over time.

Chris Meares, HSBC Private Banking Chief Executive Officer, said: "We wish the WTAS management team well in taking the business forward. Our focus is on developing our core private banking activities in both developing and developed markets using HSBC's unique distribution network."

Completion of the transaction is subject to customary closing conditions.