Japanese financial institution Mizuho Financial Group has agreed to acquire Greenhill, a US-based investment banking and advisory firm, in an all-cash deal worth around $550m, inclusive of the latter’s debt.
As per the terms of the deal, shareholders of the New York Stock Exchange (NYSE) listed Greenhill will be paid $15 per share.
The deal is expected to enable Mizuho Financial Group to expedite its investment banking growth strategy. It will build on the 27-year history of Greenhill in providing financial advice to major clients on mergers and acquisitions (M&As), restructurings, and capital raising transactions.
Mizuho Financial Group president and group CEO Masahiro Kihara and Mizuho Americas chairman and CEO Shuji Matsuura said: “Our Banking division today serves over 1,300 clients in the Americas and 900 in Europe, as well as over 70 percent of all listed companies in Japan.
“We look forward to making Greenhill’s M&A and restructuring capabilities available to our clients, and to offering our full range of solutions to Greenhill’s clients. The transaction represents an important strategic milestone, and we plan to continue to invest in the growth of our global banking franchise.”
With offices in the US, Germany, Hong Kong, the UK, Spain, Australia, Japan, and other countries, Greenhill caters to corporations, institutions, partnerships, and governments.
Post-acquisition, the company will continue its global operations from its 15 locations around the world as Mizuho Financial Group’s M&A and restructuring advisory unit.
The Greenhill brand and its existing leadership team will both be retained. Its 370 employees will be absorbed into Mizuho Financial Group.
Greenhill chairman and CEO Scott Bok said: “Our firm was a pioneer in the concept of the publicly traded independent investment bank, and that format served us well for many years.
“Now, given the evolution of markets, we believe our clients and employees will benefit from our team becoming part of a larger, more diversified financial institution.”
The deal, which is subject to Greenhill’s stockholders’ approval, regulatory approvals, and other customary conditions, is anticipated to close by the year-end.
