TD to Buy Cowen for $1.3 Billion to Bulk Up Capital Markets (2)

Toronto-Dominion Bank agreed to buy US brokerage Cowen Inc. for $1.3 billion in cash, bulking up its presence in American capital markets just months after striking a historic deal to expand its retail operations in the country.

Toronto-Dominion agreed to pay $39 a share, according to a statement Tuesday. The acquisition is likely to be “modestly accretive” to adjusted earnings per share next year, the Toronto-based company said. Bloomberg News reported last month that the bank was weighing the deal.

In purchasing Cowen, Canada’s second-largest bank is addressing its relative weakness in the capital-markets business relative to larger competitors such ...