Two financial services firms that specialize in deal-making have agreed to their own merger: Minneapolis-based Piper Jaffray is buying Sandler O’Neill and Partners of New York for $485 million in cash and stock, with the new firm to be named Piper Sandler Cos.
Sandler O’Neill is a investment bank focused on the financial services industry, while Piper Jaffray’s operations are chiefly concerned with the expansion of its investment banking platform — which includes M&A advisory work. The O’Neill purchase should help Piper expand its fixed income business, equity research and sales and trading franchise, according to the firm.
The combined entity, as measured by 2018 results, would have included investment advisory services revenues of nearly $575 million and investment banking revenues of nearly $840 million.
“We have a long history with Sandler O’Neill. We admire the quality of their professionals, the business they have built and the culture of the firm which is based on many values we share,” said Piper CEO Chad Abraham in a statement.