Cowen Group Completes $100M Convergex Acquisition

Jun 1 2017 | 8:33pm ET

Financial services company Cowen Group has completed its acquisition of global brokerage and trading services company Convergex Group LLC, which has been renamed Cowen Execution Services LLC effective June 1.

Total consideration for the acquisition, which was announced in early April, was $100.7 million (including seller transaction expenses) and is comprised of $53.1 million in cash and $47.6 million in Cowen common stock, Cowen said in a statement to FINalternatives

“The acquisition of Convergex enhances our position as a leader in high quality research and superior global execution capabilities,” said Peter Cohen, chairman and CEO of Cowen, in the statement. “Integrating the best of Convergex with Cowen shows Cowen’s commitment to providing its combined client base with innovative and differentiated capabilities.” 

“With the closing of the acquisition, Cowen has become a leading independent, full service, agency equity trading platform that is also a key equity market liquidity provider,” added Jeffrey Solomon, president of Cowen.  “We have enhanced our capabilities in electronic trading with a broad suite of non-conflicted trading products that can source liquidity across fragmented markets and drive substantial value creation for our collective clients, as well as extended our capabilities in prime services and clearing.”

The combination of Cowen and Convergex results in a firm with combined pro forma brokerage execution revenues of more than $400 million last year, positioning Cowen as a leader in U.S. trading volume and expanding the company’s reach to 108 countries, including China, Cowen added. The acquisition is expected to be accretive to economic income per share and return on tangible common equity in 2018.

Founded in 1918 and based in New York, Cowen Group is a diversified financial services firm providing alternative asset management, investment banking, research, sales and trading and prime brokerage services through Cowen Investment Management, its alternative investment segment, and Cowen and Company, its broker-dealer unit. 

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