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 currently provide.
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 cycle."