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Minneapolis-based Piper Jaffray will continue to expand in Chicago with the latest purchase from its $ 485 million New York counterpart Sandler O'Neill & Partners.
Piper Jaffray, who will take the name of Piper Sandler, has expanded his operations in Chicago in recent years and will also integrate a Sandler office in the city. The Sandler office employs about 30 people, including sales and trading, equity research and investment banking, according to a person familiar with the operations.
This could give Piper nearly 200 employees in the city if its workforce is still equal to or greater than 150 Chicago employees in 2015, after a few previous acquisitions. A spokesperson did not immediately respond to requests to update this figure.
Under the leadership of a former CEO, Andrew Duff, Piper had decided to acquire a boutique at the investment bank and a municipal bond business in Chicago in 2015, with the goal of develop its stronghold in the Midwest, the largest city in the region. Since then, Duff has retired and Chad Abraham has succeeded him.
The specialized investment banks that advise companies during mergers are starting to find their own partners.
Piper Jaffray announced Tuesday it has agreed to buy out Sandler O'Neill & Partners for $ 485 million, and Canadian Imperial Bank of Commerce has announced plans to acquire Cleary Gull, a Milwaukee-based company.
These mergers follow Raymond James Financial's April agreement with Silver Lane Advisors and the acquisition of Ambassador Financial Group by PNC Financial Services Group, announced in January. Raymond James President and CEO Paul Reilly said last month he was looking to acquire more businesses to grow, including mergers and wealth management.
Investors reward high-margin advisory business as the M & A market warms. Global transactions are expected to reach $ 3 trillion for the sixth year in a row. At the same time, bank mergers can help small businesses compete more effectively with Wall Street giants such as Goldman Sachs Group, which has said it wants to target opportunities in mid-markets that it has previously ruled out.
"Many banks need to grow," said Jimmy Dunne, chief executive of Sandler O'Neill, in an interview with Bloomberg Television. "The technology costs and regulatory costs have made the size of the size, so the merger wave will continue," said Dunne, who will become vice chairman of the board of directors of the merged company, Piper Sandler.
Bloomberg contributed to this story.
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