Cowen Group, a US-based financial services firm, has agreed to purchase Convergex from the private equity firm GTCR, Bank of New York Mellon and other shareholders for $116m.
Based in New York, Convergex provides global brokerage and trading-related services to nearly 2,500 hedge funds, asset managers, broker-dealers, trusts and exchanges.
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Cowen and Convergex in a joint statement said that the combined business would have had pro forma brokerage execution revenue of more than $400m in 2016. The acquisition is expected to boost economic income per share in 2018.
The acquisition is not contingent on the closing of the terms of Cowen's strategic partnership with China Energy, they added.
The deal, which is subject to customary closing conditions and regulatory approvals, is expected to close by the end of the second quarter of 2017.
Cowen president Jeffrey Solomon said: “Together, our combined best-in-class global execution capabilities, along with Cowen’s high-quality research and corporate finance advisory services, will enable us to continue helping our clients to outperform in challenging markets.
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By GlobalData“The addition of Convergex’s global platform will also establish meaningful scale for Cowen’s equities business by significantly bolstering our capabilities in prime services, commission management, algorithmic and electronic trading, as well as clearing services.”
Convergex Group president and CEO Eric Noll said: “The ability to combine with a great research based firm like Cowen, which has complementary businesses with minimal client overlap, creates a tremendous opportunity for our people and our clients. By forging this combination with enhanced experience and expertise, our respective clients will now have access to a wider array of global offerings and innovative solutions.”
