Wells Fargo Acquires Merlin Securities

Apr 27 2012 | 10:26am ET

Wells Fargo Securities, the capital markets and investment banking arm of Wells Fargo & Company, will acquire the New York and San Francisco-based primer broker and tech provider Merlin Securities.

The value of the transaction was not disclosed.

In announcing the deal Friday, Wells Fargo Securities head John Shrewsberry said Merlin’s capabilities would “fill an important niche” in his company's product set.

Merlin is behind a suite of integrated solutions with its MerlinPrime and MerlinSHARP products and provides open architecture technology, custody and clearing services, operational support and securities trading to clients in the asset management industry. 

“This is a logical extension of our offering to the investment industry, which is increasingly focused on tools to enhance risk management and improve capital efficiency," said Shrewsberry in a statement. "In addition, it provides new cross-sell opportunities for existing customers of both Wells Fargo and Merlin. This transaction enhances our ability to meet customer needs and generate earnings for our shareholders, all while adhering to our disciplines of prudent risk management and controlled growth.”

The deal will see Merlin employees join Wells Fargo Securities. Managing partners Stephan Vermut and Aaron Vermut will continue to lead the prime services offering.

“Wells Fargo is the perfect partner for Merlin and its clients,” said Stephan Vermut. “Together, our clients will have access to a greater range of products and financial resources that will augment the open architecture solutions that Merlin currently provides.”

The transaction, subject to regulatory approval, is expected to close in Q3 2012.


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