Cowen has brokered a deal to acquire M&A advisory firm Portico Capital Advisors, which specialises in verticalized software, data, and analytics sector.
The deal, whose financial terms are not disclosed, comprises 75% cash and 25% stock. This transaction is expected to close in the fourth quarter of the year.
Founded in 2000, Portico has 20 employees across its offices in the US and the UK.
The addition of Potico will allow Cowen to boost its capabilities in capital markets, advisory, and research. It is expected to increase the firm’s M&A advisory revenues by approximately 20% in fiscal 2022.
Furthermore, the acquisition is also anticipated to expand Cowen’s investment banking business.
According to the company, the revenues of its investment banking business increased over four-fold since 2017 on the back of significant growth in its M&A and Capital Markets Advisory practices.
Cowen and Company co-president Larry Wieseneck said: “By combining Cowen’s broad advisory and capital markets capabilities with Portico’s deep sector domain experience and M&A skill set, we are delivering on our stated strategy of building a world-class, diversified banking platform that will be even better positioned to help our collective clients outperform in sectors that have strong tailwinds. We are very excited to welcome Portico’s world-class team into the Cowen family.”
Portico founder and executive chairman Rick Northrop said: “For two decades, the Portico team has focused on leveraging our deep sector expertise and relationships to deliver value for our clients through focus, experience, and guidance at every step of a transaction. We are delighted to enhance our ability to deliver high quality value to clients on the Cowen platform.”