Hamilton, Bermuda-based Bank of N.T. Butterfield & Son Ltd. agreed to acquire Deutsche Bank AG's banking and custody business in the Cayman Islands, Jersey and Guernsey. Deal terms were not disclosed.

Deutsche Bank decided to sell the business in the Cayman Islands and Channel Islands, which provides services primarily to financial intermediaries and corporate clients, as part of its strategy to make its operations simpler and more efficient.

Bank of N.T. Butterfield intends to offer positions to a majority of Deutsche Bank employees available to transfer along with the acquired business, including employees in Mauritius who provide operations and support services to the Cayman and Channel Islands banking and custody businesses.

The transaction is expected to close in stages during 2018, subject to all regulatory approvals and other closing conditions.

As previously reported in October 2017, Bank of N.T. Butterfield is also acquiring Deutsche Bank's global trust solutions business, excluding its U.S. domestic trust operations.