Corporate and Institutional stockbroker Panmure Gordon (LSE:PMR) entered into an agreement to acquire US based investment bank ThinkEquity.
The move will allow Panmure Gordon to extend its reach into the United States and build a 'bridge' between New York and London, where the company hopes it can capitalise on US based companies choosing to list in London in light of less regulation. ThinkEquity had revenues of US$64 million in 2006 and currently advises on more than $835 million through its wealth management division.
The new combined group will employ 320 people, provide research to 500 companies, make markets in 800 companies and service over 800 institutional accounts.
Panmure Gordon will pay £31.9 million for ThinkEquity, funded with £15.7 million in cash and 8.9 million shares.
CEO of Panmure Gordon, Tim Linacre, said:
'I am delighted we have reached agreement to acquire ThinkEquity. This is a significant acquisition for Panmure Gordon and is a logical step building on the strong performance of the last two years. The combined business will be well placed to address increasingly international capital markets. I have been greatly impressed by the way ThinkEquity have grown their business, and by combining ThinkEquity with Panmure Gordon we can create a very powerful offering
for clients.'