Cowen Inc. has agreed to buy software-focused mergers and acquisitions advisory firm Portico Capital Advisors, as the investment bank expands in the business amid record levels of deal activity.
The acquisition will bolster Cowen’s investment banking operations while enabling Portico to provide Cowen’s capital markets, advisory and research capabilities to clients, Cowen said in a statement. The deal’s consideration will be comprised of 75% cash and 25% stock. Other terms weren’t disclosed.
Cowen’s purchase of the M&A advisory firm comes during a golden era for dealmaking, where low interest rates and abundant corporate cash have made acquisitions attractive. The firm in September last year agreed to acquire the investment banking business of MHT Partners, which represents innovative companies in growing markets.
New York-based Portico focuses on the verticalized software, data and analytics market, “a critically important, fast-growing, and dynamic sector that will underpin the global economy in thedecades ahead,” said Larry Wieseneck, co-president of Cowen & Co.
The deal is expected to increase Cowen’s M&A advisory revenues by about 20% in fiscal year 2022, according to the statement. In October, the firm’s investment bank reported record M&A advisory and capital markets revenues for the third quarter.
The financial sector more broadly has seen a surge in deals as banks made bolt-on acquisitions to cut costs and add technologies. Earlier this year, Stifel Financial Corp. agreed to buy fixed-income brokerage Vining Sparks and its affiliates, while Citizens Financial Group Inc. struck a deal to acquire JMP Group LLC.
