Piper Jaffray buying Sandler O'Neill for $485 million

Piper Jaffray buying Sandler O'Neill for $485 million
Sandler O'Neill is a leading investment bank in the financial services industry.
JUL 09, 2019

Piper Jaffray Co. said Tuesday morning that it was buying Sandler O'Neill + Partners, a leading investment bank for the financial services industry, for $485 million in cash and stock. The combined firm will be named Piper Sandler Cos. The deal is structured so that Piper Jaffray pays $350 million in cash to Sandler O'Neill stock holders and $135 million in restricted stock to Sandler O'Neill employee partners. Piper Jaffray is also setting aside $115 million for long-term retention incentives, primarily in the company's restricted stock, for Sandler O'Neill employees. An investment banking firm, Piper Jaffray also has an investment management group, which includes a traditional asset management business and investments in registered funds and private funds or partnerships that the firm manages. Clients include institutions, private clients and investment advisers. Piper Jaffray CEO Chad Abraham will continue to lead the combined company. Jimmy Dunne, senior managing principal at Sandler O'Neill, will become the new company's vice chair and senior managing principal of Piper Sandler's financial services business. In 2018, the combined investment banking revenues for the two firms would have been nearly $840 million, according to the companies. The transaction is expected to close in January. This merger follows Raymond James Financial Inc.'s deal for Silver Lane Advisors in April and PNC Financial Services Group Inc.'s takeover of Ambassador Financial Group, which was announced in January, Bloomberg News noted.

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