U.S. Bancorp Strikes $1B Deal to Acquire BTIG
U.S. Bancorp plans to acquire brokerage firm BTIG at a valuation of $1 billion in a mix of cash and stock, as the giant aims to boost its equity capital markets offerings in the market.
The transaction between the two entities will allow U.S. Bancorp to expand on its existing investment banking services and incorporate BTIG’s brokerage, trading, and institutional sales services.
The acquisition is expected to close in the second quarter of this year, and U.S. Bancorp will pay $725 million at the closing of the deal, with $362.5 million in cash and 6.6 million shares of its common stock.
Over three years, there is up to an additional $275 million of payable cash consideration, U.S. Bancorp said.
U.S. Bancorp’s relationship with BTIG dates to 2014, when BTIG became U.S. Bancorp’s equity capital markets referral partner. The firms also launched an M&A advisory referral program in 2023.
“With a long history of successful collaboration, we are thrilled to join U.S. Bancorp as a means of increasing our collective impact with institutional and corporate clients,” Anton LeRoy, CEO of BTIG, said. “Our clients will continue to enjoy the same level of high-touch service and attention from our committed leadership team, while our employees will benefit from additional resources and new opportunities as part of a leading global financial institution.”
As part of the transaction, BTIG’s leadership team will transition to U.S. Bancorp, with LeRoy remaining as CEO of BTIG, and will report to Stephen Philipson, vice chair and head of wealth, corporate, commercial, and institutional banking at U.S. Bancorp. Additionally, BTIG’s co-founder and executive chairman Steven Starker, will continue his position, following the transaction.
New York-based BTIG, founded in 2005, provides investment banking, institutional sales and trading, research, and brokerage services and operates in 20 cities across the U.S., Europe, and Australia.
For the third quarter of last year, U.S. Bancorp recorded a net revenue of $7.33 billion, which is a 6.8% increase year-over-year. The bank is expected to release its fourth quarter results next week.