The terms of the sale of Abacus Financial Services to the Royal Bank of Canada have not been disclosed.
The transaction has the approval of Abacus shareholders and the regulators.
Both companies say the deal will give them a greater opportunity to expand their businesses and that they do not expect jobs to be lost as a result.
Today’s announcement follows weeks of rumours about the possibility of the acquisition, although this was previously categorically denied by both companies.
Abacus employs around 300 staff in Jersey and also has offices in Guernsey, London, Cheltenham, Edinburgh and Amsterdam.
The firm specialises in international wealth management services and a substantial part of its business now focuses on the administration of employee benefit plans.
The Royal Bank of Canada also has a substantial operation in the Island employing more than 500 staff, predominantly in trust work and investment.
Globally the bank’s private banking business has 30 offices in 21 countries.
