Acquisition will expand capital markets,
research, and investment banking capabilities
Freedom Holding Corp. (Nasdaq: FRHC), a diversified
multi-national financial services firm, announced today that it has
reached a definitive agreement to acquire Maxim Group LLC and its
registered investment advisory affiliate Maxim Financial Advisors
LLC (together “Maxim Group”), for a combination of cash and common
stock. Including deferred payments and retention bonuses, the total
consideration for the acquisition will be approximately $400
million (USD). Freedom continues its strategy of acquisitions
following its 2020 purchase of Prime Executions, Inc., an
institutional trading firm with operations on the floor of the New
York Stock Exchange which was recently approved to conduct
investment banking and equity capital market businesses under
Freedom Capital Markets.
Maxim Group is a leading full-service investment bank
headquartered in New York, that caters to emerging growth companies
globally. Its business lines include investment banking, equity
capital markets and institutional sales, equity research, merchant
capital, and corporate and wealth management services. Maxim
Group's corporate and institutional reach into Asia, Greece,
Israel, and most of Western Europe will complement Freedom's
brokerage and global distribution network. Together, the combined
entity will provide a broad suite of product offerings to meet the
needs of its diverse global client base.
Timur Turlov, CEO of Freedom Holding Corp., stated, "We are
committed to growing our global footprint, and we recognize that
having a significant U.S. presence is an important part of this
strategy. Adding Maxim to our group as a trusted partner through
this cornerstone transaction will turbocharge our growth as we
continue to expand our U.S. operations."
Once the transaction is complete, Robert Wotczak, Chief
Executive Officer of Freedom's U.S. operations, will be appointed
Executive Chairman of Maxim Group and its subsidiaries, Clifford
Teller will be promoted to Chief Executive Officer, and Chris
Fiore, one of the Founders of Maxim Group, will remain as
President.
"We look forward to building on Maxim's history of success and
consistent profitability in varying market conditions," said Robert
Wotczak. "Having worked alongside many Maxim team members
throughout my career, I have tremendous respect for and confidence
in this team's ability to accelerate growth across all business
divisions."
"We are looking forward to working with the Freedom team in
building a world-class financial services company," said Clifford
Teller, President of Maxim Group. "With Freedom's differentiated
distribution network, vast resources, and the synergies among the
firms, Maxim will have the ability to expand exponentially in all
areas of the investment bank while creating unique U.S. capital
market solutions for our clients."
"I am extremely proud of the success Maxim Group has achieved
over its twenty-year history. Speaking for our senior management
and all of our dedicated employees, we look forward to starting our
next chapter and working with an exceptionally strong and talented
partner in Freedom," stated Michael Rabinowitz, Chairman of Maxim
Group.
Completion of the transaction is subject to certain conditions
and the receipt of required regulatory approvals.
About Freedom Holding Corp.
Freedom Holding Corp., a Nevada corporation, is a financial
services holding company conducting retail financial securities
brokerage, investment research, investment counseling, securities
trading, investment banking and underwriting services, mortgages,
insurance, and consumer banking through its subsidiaries under the
name of Freedom Finance in Europe and Central Asia. Through its
subsidiaries, Freedom Holding Corp. employs more than 2,900 people
and is a professional participant in the Kazakhstan Stock Exchange,
the Astana International Exchange, the Ukrainian Exchange, the
Republican Stock Exchange of Tashkent, and the Uzbek Republican
Currency Exchange and is a member of the New York Stock Exchange
and the Nasdaq Stock Exchange.
Freedom Holding Corp. is headquartered in Almaty, Kazakhstan,
and has a presence in 14 countries, including Cyprus, the United
States, Uzbekistan, the United Kingdom, and Germany.
Freedom Holding Corp.'s common shares are registered with the
United States Securities and Exchange Commission and are traded in
the United States on the Nasdaq Capital Market, operated by Nasdaq,
Inc.
To learn more about Freedom Holding Corp., visit
www.freedomholdingcorp.com.
About Maxim Group LLC
Maxim Group LLC is a full-service investment banking firm
headquartered in New York with approximately 240 employees. Maxim
Group provides a full array of financial services, including
investment banking; private wealth management; and global
institutional equity, fixed-income, and derivatives sales and
trading, as well as equity research. The investment banking group
focuses on middle market and emerging growth companies within the
shipping, energy, health care, technology, retail, and business and
financial services sectors. The institutional coverage of Maxim
Group spans North and South America, Europe, and Asia. Maxim Group
LLC is registered as a broker-dealer with the U.S. Securities and
Exchange Commission and is a member of the following: Financial
Industry Regulatory Authority (FINRA); Municipal Securities
Rulemaking Board (MSRB); Securities Insurance Protection
Corporation (SIPC); NASDAQ Stock Market and the NYSE Arca, Inc.
To learn more about Maxim Group, visit www.maximgrp.com.
Cautionary Note Regarding Forward-Looking Statements
This release contains "forward-looking" statements, including
with respect to the ability of Freedom Holding Corp. (the
“Company”) to successfully complete the transaction described
herein and its ability to expand its operations in the United
States. All forward-looking statements are subject to uncertainty
and changes in circumstances. In some cases, forward-looking
statements can be identified by terminology such as "expect,”
"new,” "plan,” "seek," and "will," or the negative of such terms or
other comparable terminology used in connection with any discussion
of future plans, actions, and events. Forward-looking statements
are not guarantees of future results or performance and involve
risks, assumptions, and uncertainties that could cause actual
events or results to differ materially from the events or results
described in, or anticipated by, the forward-looking statements.
Factors that could materially affect such forward-looking
statements include certain economic, business, and regulatory risks
and factors identified in the Company's periodic and current
reports filed with the U.S. Securities and Exchange Commission. All
forward-looking statements are made only as of the date of this
release and the Company assumes no obligation to update
forward-looking statements to reflect subsequent events or
circumstances. Readers should not place undue reliance on these
forward-looking statements.
Website Disclosure
Freedom Holding Corp. intends to use its website,
https://ir.freedomholdingcorp.com, as a means for disclosing
material non-public information and for complying with U.S.
Securities and Exchange Commission Regulation FD and other
disclosure obligations.
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version on businesswire.com: https://www.businesswire.com/news/home/20230216005424/en/
Media: Freedom Holding: Deborah Kostroun Phone:
201-403-8185 Email: Deborah@zitopartners.com
Maxim Group: Ian Hummel Phone: 212-895-3700
Press@maximgrp.com
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