UK-based investment banks Cenkos Securities and finnCap Group have reached a deal to merge their business in a deal worth around £21.1 ($26m).
Under the all-share deal, the firms will merge their operations to create a full-service advisory company for growth and investment firms.
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The consolidated entity will have over 210 clients, with a workforce of more than 230 employees.
It will also have more than £50m of proforma combined revenues and over £20m combined cash.
The merged firm will integrate the equity capital market businesses of Cenkos and finnCap.
The planned combination will improve and complement finnCap’s client base. It will also enable Cenkos’ clients to avail additional services such as finnCap’s private M&A business Cavendish as well as finnCap’s debt and private capital raising advisory solutions.
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By GlobalDataFollowing the completion of the deal, Cenkos and finnCap’ current CEOs will jointly lead the merged entity as co-CEOs.
Cenkos chair Lisa Gordon becoming the chair of the new group that will feature equal numbers of directors from both the firms.
In addition, shareholders of Cenkos and finnCap will each own around 50% of the entire issued ordinary share of finnCap.
Subject to the approval of the Financial Conduct Authority (FCA) and fulfilment of other necessary condition, the deal is anticipated to be closed by the third quarter of this year.
Gordon said: “This proactive and mutually-beneficial merger creates a champion for growth and investment companies, both UK-quoted and private entrepreneurial businesses, that are the backbone of our economy.
“The two firms’ cultures are very similar, and our client lists and capabilities are complementary.
“This is good for our clients, our employees, our investors and the UK capital markets as a whole.”
