As consideration for the transaction, Piper Jaffray will pay $180.1m in cash and $39.7m, or 893,105 shares, of restricted stock. Employee owners will receive approximately 40% of their consideration in restricted stock.
Piper Jaffray asset management business will have $12.4bn of assets under management with 94 employees, including 42 investment professionals. Piper Jaffray said that locations will remain in Chicago and St. Louis.
Brien O’Brien, chief executive officer of Advisory Research, will join the Piper Jaffray senior leadership team and report to Andrew Duff, chairman and CEO of Piper Jaffray. Mr O’Brien will continue to lead Advisory Research and Wiley Angell, CEO of FAMCO, the current Piper Jaffray asset management business, will continue to lead that organization. Mr O’Brien will provide leadership to the overall asset management business.
Mr Duff said: “Advisory Research will significantly expand our asset management business and provide sufficient scale for future organic growth. Going forward, we expect our asset management business to contribute approximately 25% of our ongoing earnings, providing a stable complement to our more cyclical global capital markets business.”
