Banking giant HSBC USA has said it would sell its Wealth and Tax Advisory Services USA business to some of its managing directors for up to $65.9 million as part of a management buyout.

The deal is expected to help the business pursue a broader expansion strategy. HSBC will receive $5 million in cash along with a performance payment in the form of deferred notes with a principal amount totaling $60.85 million.

HSBC has an option to acquire 19.9 percent of WTAS equity, subject to certain conditions and dilution as new managing directors join WTAS over time. HSBC is selling the 350-employee practice to concentrate on other specialties.

"Our focus is on developing our core private banking activities in both developing and developed markets using HSBC's unique distribution network," said Chris Meares, CEO of HSBC Private Banking, in a statement.

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