Swiss money management group Julius Baer has agreed to buy Bank of America’s private banking arm Merrill Lynch’s operations outside the US for 860m Swiss francs.

The acquisition is the latest in a long line of recent takeovers by Julius Baer and includes the transfer of 72bn francs worth of assets under management. Merrill Lynch’s cost-to-income ratio was of 105 percent in 2011 and the private bank attracted only a one percent rise in new clients last year.

Julius Baer has also announced plans to raise 750m Swiss francs to help fund the deal. The cost of integration and restructuring of the business after the acquisition has been budgeted at an additional 400m francs.

“This acquisition brings us a major step forward in our growth strategy and will considerably strengthen Julius Baer’s leading position in global private banking,” Chief Executive Officer Boris Collardi said in a statement.

After the announcement, Julius Baer shares dropped by as much as four percent in Zurich trading, and have not yet fully recovered.

In a cash and share deal, Bank of America will own about three percent in Julius Baer, according to Chief Financial Officer, in an interview for Bloomberg.