Silicon Valley Bank's UK unit has been sold to HSBC for $1.21

• Silicon Valley Bank's UK unit has been sold to HSBC for 1 British pound, or $1.21.
• The UK government and the Bank of England facilitated the private sale, Chancellor Jeremy Hunt said.
• "This acquisition makes excellent strategic sense for our business in the UK," HSBC CEO Noel Quinn said.

HSBC has acquired Silicon Valley Bank's UK unit for 1 British pound, or $1.21, according to a statement from the bank Monday.

The UK government and the Bank of England facilitated the private sale, British Chancellor Jeremy Hunt said on Twitter.

"Deposits will be protected, with no taxpayer support," Hunt said.

—Jeremy Hunt (@Jeremy_Hunt) March 13, 2023

"This acquisition makes excellent strategic sense for our business in the UK," HSBC CEO Noel Quinn said in the bank's statement.

The acquisition of Silicon Valley Bank's UK unit came after its California-based parent was shut down by California regulators Friday and taken over by the Federal Deposit Insurance Corporation (FDIC).  Silicon Valley Bank's share prices had collapsed following a failed $2.3 billion capital raise.