Evercore Partners, a US-based investment banking advisory firm, has signed an agreement to the operating businesses of ISI International Strategy & Investment (ISI), an independent research-driven equity sales and agency trading firm.
Additionally, Evercore will also acquire the remaining 40% interest in its institutional equities business which is not currently owned by the Company.
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As part of the deal, ISI will be merged with Evercore’s existing equity trading and research business and the combined business will be known as Evercore ISI Institutional Equities.
The combined Equities business will be managed by an executive committee consisting of Ed Hyman, Vinayak Singh, currently president of ISI, and Charles Myers, the current head of Evercore’s institutional equities business.
Subject to regulatory approval, the transactions are expected to close in the fourth quarter of 2014.
Following the deal, Evercore and ISI are planning to merge their research, sales and agency trading operations creating a truly elite equity research, sales and agency trading platform.
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By GlobalDataAdditionally, Ed Hyman, the chairman and founder of ISI, will become a vice chairman of Evercore and chairman of the combined Equities business.
The acquisition of ISI will more than double the number of research analysts at Evercore, and boost revenues generated by research and equity trading by fivefold.
Evercore has agreed to pay up to 8 million of its shares for the two transactions, with about 70% of the payout dependent on the financial performance of the combined business over the five years following closing. The deal will value ISI at more than $400million at Evercore’s closing stock price of $50.13.
Ralph Schlosstein, president and CEO of Evercore, said: "The transaction structure that we have crafted together provides strong incentives for continued top line growth, for meaningful cost discipline and for the achievement of competitive operating margins, and it will enhance the consistency of our financial performance through the M&A cycle."
