Cowen snaps up Convergex for $116 million 05 April 2017 New York Reporter: Mark Dugdale
Image: Shutterstock
Cowen Group is splashing $116 million on Convergex to set itself up as an independent trading platform in equities.
The cash and stock deal has been struck with Convergex owners BNY Mellon and GTCR, a private equity firm.
Convergex is an agency-focused global brokerage and trading related services provider with a client base of 2,500 hedge funds, asset managers, broker-dealers, trusts and exchanges.
Its business units include equity sales and electronic trading, commission management, prime services and global clearing.
In a statement on the acquisition, Cowen said: 鈥淲ith combined pro forma brokerage execution revenues of over $400 million in 2016, the transaction solidifies Cowen as a clear leader in US trading volume and expands Cowen鈥檚 reach to 108 countries around the globe, including China.鈥�
Cowen president Jeffrey Solomon said: 鈥淲e are thrilled by today鈥檚 announcement and welcome Convergex鈥檚 extremely talented team to Cowen.鈥�
鈥淭ogether, our combined best-in-class global execution capabilities, along with Cowen鈥檚 high-quality research and corporate finance advisory services, will enable us to continue helping our clients to outperform in challenging markets.鈥�
鈥淭he addition of Convergex鈥檚 global platform will also establish meaningful scale for Cowen鈥檚 equities business by significantly bolstering our capabilities in prime services, commission management, algorithmic and electronic trading, as well as clearing services.鈥�
Eric Noll, president and CEO of Convergex Group, commented: 鈥漈he 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.鈥�
NO FEE, NO RISK 100% ON RETURNSIf you invest in only one securities finance news source this
year, make sure it is your free subscription to 网爆吃瓜 Finance Times
Image: Shutterstock 