Cowen Inc said on Tuesday it would buy Portico Capital Advisors, an advisory firm focused on dealmaking in the software industry, as the financial services firm seeks to bolster its investment banking business.
Cowen did not disclose the size of the deal but said it would comprise 75% in cash and 25% in stock, adding that it expects its mergers-and-acquisition (M&A) advisory revenue to jump by nearly 20% in fiscal 2022 as a result.
The deal would also allow Portico to provide Cowen’s capital markets, advisory and research capabilities to clients, according to the statement.
Shares of Cowen were down 0.3% at $38.20 in early trading.
New York-based Cowen’s move comes as high liquidity and near-zero interest rates have boosted dealmaking activity, which helped major Wall Street banks JPMorgan Chase & Co and Goldman Sachs report a record quarter.
The deal is expected to close in the fourth quarter, with Perkins Advisors and M. Klein & Company acting as advisers to Cowen and Portico, respectively.
Source: Reuters.com