"With this transaction, Deutsche Bank strengthens its position among high-net-worth private clients, especially in Germany," the German financial giant said in a statement.
"Sal. Oppenheim's Asset and Wealth Management activities will be maintained and expanded in the future under the private bank's established brand and preserve Sal. Oppenheim's identity, values, culture and service quality."
The transaction nonetheless marks the end of Sal Oppenheim's independence. The bank was founded in 1789 and billed itself as the largest independent private bank in Europe, but its finances have deteriorated sharply.
"In the future Sal. Oppenheim will focus on their core asset and wealth management business," the statement said.
Current shareholders in the bank will have the option of taking a long-term holding of up to 20 percent in the German subsidiary Sal. Oppenheim jr. & Cie. KGaA based in Cologne, the statement said. Deutsche Bank also planned to buy activities owned by Oppenheim for an additional €300 million.
As of June 30, Sal. Oppenheim had approximately €135 billion in client assets under management, and employed roughly 4,400 people. Deutsche bank had total assets as of June 30 of €1.73 trillion and nearly 79,000 staff.
Its private wealth management division controlled invested assets of around €171 billion, and once the deal is finalised "will become the market leader in Germany in the coverage of high-net-worth private clients, family assets and trusts."