Piper Jaffray Companies Expands Municipal Business with Acquisition of Seattle-Northwest Securities Corporation
April 17 2013 - 4:01PM
Business Wire
Piper Jaffray (NYSE: PJC), a leading investment bank and asset
management firm, today announced that it has entered a definitive
agreement to purchase Seattle-Northwest Securities Corporation
(“Seattle-Northwest”) in a transaction valued at approximately $21
million. Upon closing, the tangible book value of Seattle-Northwest
is estimated to be $13 million.
Founded in 1970, Seattle-Northwest is a leading public finance
firm in the Northwest region. The firm is an established leader in
underwriting municipal securities, and its sales and trading
division distributes bonds nationwide. Piper Jaffray and
Seattle-Northwest have minimal geographic and business overlap, and
the combination further strengthens Piper Jaffray’s public finance
leadership in serving the middle market.
“This is a great combination for both firms,” said Andrew Duff,
chairman and CEO of Piper Jaffray. “We have known and respected
Seattle-Northwest for many years. A key part of our firm’s strategy
is investing in our public finance business, and this represents a
significant step forward in developing a national franchise for our
business.”
“Joining forces with Piper Jaffray will allow us to build on
Seattle-Northwest's strength and reputation in the Pacific
Northwest,” said Karl Leaverton, CEO and president of
Seattle-Northwest. "We believe there is a strong cultural fit
between our firms, and our employees and clients will benefit from
Piper Jaffray’s specialized products, deep inventory and
strong capital base.”
The agreement is subject to approval by Seattle-Northwest's
shareholders, and regulatory approvals and customary closing
conditions and expected to close in the second half of 2013.
About Piper JaffrayPiper Jaffray is a leading investment
bank and asset management firm serving clients in the U.S. and
internationally. Our proven advisory teams combine deep industry,
product and sector expertise with ready access to capital. Founded
in 1895, the firm is headquartered in Minneapolis and has offices
across the United States and in London and Zurich.
www.piperjaffray.com
Cautionary Note Regarding Forward-Looking Information
This announcement contains forward-looking statements.
Statements that are not historical or current facts, including
statements about beliefs and expectations, are forward-looking
statements. These forward-looking statements cover, among other
things, the future prospects of the Company and management’s
expectations regarding revenues, return on equity, and cost
synergies. Forward-looking statements involve inherent risks and
uncertainties, and important factors could cause actual results to
differ materially from those anticipated, including the following:
(1) the transaction announced in this release may not be completed,
or completed within the expected timeframe; (2) the costs or
difficulties relating to the combination of the businesses may be
greater than expected and may adversely affect our results of
operations and financial condition; (3) the expected benefits of
the transaction, including revenue growth for our public finance
business, may take longer than anticipated to achieve and may not
be achieved in their entirety or at all and will in part depend on
the ability of the Company to retain and hire key personnel and
maintain relationships with clients pending the consummation of the
transaction; (4) developments in market and economic conditions
have in the past adversely affected, and may in the future
adversely affect, the business and profitability of the Company;
and (5) other factors identified under “Risk Factors” in Part I,
Item 1A of our Annual Report on Form 10-K for the year ended
December 31, 2012, and updated in our subsequent reports filed with
the SEC. These reports are available at www.piperjaffray.com or
www.sec.gov. Forward-looking statements speak only as of the date
they are made, and we undertake no obligation to update them in
light of new information or future events.
© 2013 Piper Jaffray Companies, 800 Nicollet Mall, Suite 800,
Minneapolis, Minnesota 55402-7020
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