Minneapolis-based investment bank Piper Jaffray said Monday it will acquire Charlotte middle-market investment bank Edgeview Partners.
Both companies described their firms as “complementary,” and Piper Jaffray praised Edgeview’s experience in advising mid-size companies in mergers and acquisitions. Terms of the deal, which is expected to close in the third quarter, were not disclosed.
“We are pleased to welcome this highly experienced team of M&A professionals to our firm. Edgeview’s client-centric culture, middle-market advisory capabilities and financial sponsors focus is well-aligned with our business,” Piper Jaffray CEO Andrew Duff said in a statement. “Expanding our M&A practice represents a key step forward in executing the firm’s growth strategy.”
Edgeview’s bankers will become employees of Piper Jaffray, but little else will change, Edgeview partner Ted Garner said. They’ll remain in their office in the Charlotte Plaza on South College Street
“This is not a transaction that we needed to do,” Garner said. “It’s very strategic for us and for them.”
Garner said the Charlotte office would become one of Piper Jaffray’s top four. The firm has about 40 offices in larger cities across the country, plus locations in London and Zurich. Piper Jaffray launched a fixed-income bond office in Charlotte in 2011.
Piper Jaffray did not respond to a request for comment.
Garner said that over time, Edgeview’s bankers will be able to expand their offerings to potential clients, including branching out into private debt placement, equity placement and restructurings.
Edgeview’s sale marks the second Charlotte boutique financial firm to be purchased this month. Former Bank of America CEO Hugh McColl’s eponymous firm, McColl Partners, said last Monday it was to be acquired by a Deloitte subsidiary.
In recent years, Charlotte has become a hub for boutique investment banks, often started by bankers who worked at one of the city’s big banks. The firms largely help private businesses value their companies and find buyers.
This is the second time Edgeview Partners, which was founded in 2001, has been acquired. In 2007, the firm was purchased by finance company CIT Group Inc., a New York firm that did not have an investment banking operation. After CIT fell into bankruptcy during the financial crisis, Edgeview’s partners bought back the firm in 2010 and it became independent again.
“I think this is much more synergistic than that deal,” Garner said. Staff writer Rick Rothacker contributed.
Dunn: 704-358-5235 Twitter: @andrew_dunn
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