Cowen Group Announces Acquisition of Convergex
Transaction Significantly Enhances Cowen’s Brokerage and Trading
Services Business
Uniting Businesses Establishes Cowen as the Leading Independent
Trading Platform in Equities with
Best-In-Class Global Execution Capabilities
announced the signing of a definitive agreement under which Cowen will
acquire
consideration, less certain closing adjustments, of
and Cowen common stock.
Upon closing, the transaction will position Cowen as the leading
independent trading platform in equities with high quality research and
best-in-class global execution capabilities. With combined pro forma
brokerage execution revenues of over
transaction solidifies Cowen as a clear leader in U.S. trading volume
and expands Cowen’s reach to 108 countries around the globe, including
per share and return on tangible common equity in 2018.
related services provider with a deep client base of 2,500 hedge funds,
asset managers, broker-dealers, trusts and exchanges. Business units
include equity sales and electronic trading, commission management,
prime services and global clearing.
“We are thrilled by today’s announcement and welcome Convergex’s
extremely talented team to Cowen,” said
Cowen. “Together, our combined best-in-class global execution
capabilities, along with Cowen’s high-quality research and corporate
finance advisory services, will enable us to continue helping our
clients to outperform in challenging markets. The addition of
Convergex’s global platform will also establish meaningful scale for
Cowen’s equities business by significantly bolstering our capabilities
in prime services, commission management, algorithmic and electronic
trading, as well as clearing services. We expect that our increased
scale will unlock significant economic benefits for our shareholders by
providing greater revenue resiliency through market cycles and improved
profitability through potential cost synergies.”
said, “This strategic transaction is an exciting opportunity for both
our clients and our employees.
agency-focused provider of execution services and trading technology
partner. The 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. By
forging this combination with enhanced experience and expertise, our
respective clients will now have access to a wider array of global
offerings and innovative solutions.”
The transaction price will be adjusted based on the tangible book value
of
be conducted through cash on Cowen’s balance sheet and excess cash from
stock based on a 30 day trailing VWAP. The final mix is to be determined
at closing by Cowen and the transaction is expected to close by the end
of the second quarter, 2017, following customary closing conditions and
regulatory approvals. The
closing of the terms of the strategic partnership between
China Energy Company Limited
The Company will host a conference call to discuss the transaction today
at
domestic or (484) 747-6320 international. The passcode for the call is
2513661. Those who wish to listen to the live conference call and view
the accompanying presentation slides should visit the Events and
Presentations section of Cowen’s website at www.cowen.com/investor-relations/events-and-presentations.
A replay of the call will be available beginning at
3, 2017
this call, please dial (855) 859-2056 domestic or (404) 537-3406
international and enter passcode 2513661. The webcast replay and
presentation slides will also be available on the Company’s website at www.cowen.com.
Gallagher LLP
About
with its consolidated subsidiaries, provides alternative asset
management, investment banking, research, sales and trading and prime
brokerage services through its two business segments: Ramius and its
affiliates make up the Company’s alternative investment segment, while
up the Company’s broker-dealer segment. Ramius provides alternative
asset management solutions to a global client base and manages a
significant portion of Cowen’s proprietary capital.
and its affiliates offer industry focused investment banking for
growth-oriented companies, domain knowledge-driven research, a sales and
trading platform for institutional investors and a comprehensive suite
of prime brokerage services. Founded in 1918, the firm is headquartered
in
About
services provider that takes on the industry’s toughest challenges, from
complicated trades to complex businesses. With clients’ interests as the
top priority,
global high-touch and electronic trading, prime brokerage, clearing,
commission management and beyond. Headquartered in
presence in several other locations including
accessing over 100 global market centers.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170403005550/en/
Source:
Cowen Investor Relations:
Stephen Lasota, 212-845-7919
Chief
Financial Officer
or
Nancy Wu, 646-562-1259
or
Cowen
Media:
Gagnier Communications
Dan Gagnier, 646-569-5897
dg@gagnierfc.com
or
Convergex :
Lynda
Caravello, 212-468-7713
lcaravello@convergex.com