Cowen Group has confirmed it will acquire Convergex from BNY Mellon for $116 million in a bid to expand its brokerage and trading business.
Once completed, the acquisition will see Cowen Group become one of the largest independent US equities trading platforms reaching 108 countries globally.
Jeffrey Solomon, president of Cowen, explained the combination of Convergex’s global execution and Cowen’s research and finance advisory services “will enable us to continue helping our clients to outperform in challenging markets.”
Convergex currently offers brokerage and trading services, including equity sales and electronic trading, commission management, prime services and global clearing, to around 2,500 hedge funds, asset managers, broker-dealers and exchanges.
Solomon added: “The addition of Convergex’s global platform will also establish meaningful scale for Cowen’s equities business by significantly bolstering our capabilities in prime services, commission management, algorithmic and electronic trading, as well as clearing services.”
The $116 million will be paid in cash and Cowen Group common stock and is expected to close in the second quarter this year.
Eric Noll, CEO at Convergex, described the transaction as “an exciting opportunity for both our clients and our employees.”
He said: “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.”