The Gateway to Algorithmic and Automated Trading

Cowen Group announces acquisition of Convergex

First Published 3rd April 2017

Transaction to enhance Cowen's brokerage and trading services business.

Eric Noll, Convergex

Eric Noll, Convergex

New York - Cowen Group has signed a definitive agreement to acquire Convergex Group from private equity firm GTCR, Bank of New York Mellon, and other shareholders, for a total consideration, less certain closing adjustments, of $116 million in cash and Cowen common stock.

Eric W. Noll, President and Chief Executive Officer of Convergex Group said, "This strategic transaction is an exciting opportunity for both our clients and our employees. Convergex has grown significantly as an 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."

The transaction price will be adjusted based on the tangible book value of Convergex at time of closing. The majority of the transaction is to be conducted through cash on Cowen's balance sheet and excess cash from Convergex at closing, with the remainder consisting of Cowen common 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.