JonesTrading to ramp up offering with Conifer purchase
JonesTrading, a US based agency
brokerage firm, has signed an agreement with Conifer Group, a provider of middle and back-office
services to the asset management industry, to acquire its Conifer Securities subsidiary.
As part of the deal, Conifer Group
will obtain an equity stake in JonesTrading and Jack McDonald, president
and CEO of Conifer Group, will join JonesTrading's board of directors.
The transaction is expected to close in the fourth quarter of 2012.
The acquisition will provide both
firms with the ability to enhance the trading and execution services they
JonesTrading will use the purchase
to further develop is strategy to deliver a diverse range of high-touch
services to the growing hedge fund and investment advisor markets.
The Conifer Group will use
JonesTrading to expand its fund administration and middle-office services for
hedge funds and investment managers.
"As we looked at the landscape
of growth opportunities for JonesTrading to serve our clients, we recognised
the increased demand for a broader and deeper range of quality high touch
services," said William Jones, chairman and CEO of JonesTrading.
"The businesses of JonesTrading and Conifer Securities are complementary
and the arrangement between our firms will not only make our respective
clients' trading more effective but will add value to the entire investment