Santander Holdings, the US holding company of Banco Santander, has reached an agreement to acquire independent fixed-income broker dealer Amherst Pierpont Securities.

The deal, which is valued at approximately $600m (€500m), was carried out through the acquisition of Amherst Pierpont’s parent holding company Pierpont Capital.

Amherst Pierpont specialises in premier fixed-income and structured product franchise.

In 2019, the firm was designated as a primary dealer of US Treasuries by the Federal Reserve Bank of New York. It is currently one among the only three non-banks to hold that designation.

Amherst Pierpont has approximately 230 employees serving over 1,300 active institutional clients from its headquarters in New York and offices in Chicago, San Francisco, Austin, other US locations and Hong Kong.

Following the transaction, Amherst Pierpont will be part of Santander Corporate & Investment Banking (Santander CIB) global business line.

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By GlobalData

The transaction is expected to close by the end of the first quarter of 2022, subject to regulatory approvals.

Deal Rationale

The deal bolsters Santander CIB’s infrastructure and capabilities in market making of US fixed income capital markets.

It also expands its institutional client footprint and expands its structuring and advisory capabilities for asset originators in the real estate and specialty finance markets.

Amherst Pierpont also adds a platform for self-clearing of fixed income securities for the group globally.

The company said that the combined platform will offer strong corporate debt and securities finance capabilities in the US and emerging markets.

Comments

Santander Group executive chairman Ana Botín said: “This acquisition is consistent with our customer focused strategy and our commitment to profitable growth in the USA. It complements our product offerings and capabilities, allowing us to strengthen our relationships with our corporate and institutional clients.

“The Amherst Pierpont team bring a successful track record and experience in delivering value for their clients.”

Amherst Pierpont CEO Joe Walsh added: “Santander Group is one of the world’s most respected financial institutions and an ideal partner for our growing franchise.

“With Santander’s global reach we will be able to significantly expand our product offering, grow our client base and increase the level of service we can provide to our clients.”

In March this year, Santander Private Banking announced its intention to acquire Indosuez Wealth Management business in Miami.