Cowen Group said early Monday it has acquired Convergex Group for about $116 million in a cash and shares.
The company signed a takeover agreement with private-equity firm GTCR, Bank of New York Mellon, and other shareholders, it said in a statement.
With combined pro forma brokerage execution revenues of more than $400 million in 2016, Cowen said the transaction expands its reach to 108 countries globally, including China. The deal is expected to be accretive to economic income per share and return on tangible common equity in 2018.
Convergex’s global platform will establish a “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,” said CEO Jeffery Solomon.