TD Bank Group and Cowen announced a definitive agreement for TD to acquire Cowen in an all-cash transaction valued at $1.3 billion, which will accelerate TD’s long-term growth strategy in the US.
The combined firms’ pro-forma global revenues are expected to increase significantly with added advisory, capital markets, equity execution and industry-leading research capabilities and broadened expertise in key growth sectors. Following the closing of the transaction, TD Securities’ existing global market research capabilities will benefit from Cowen’s equity research franchise. Furthermore, TD Securities’ balance sheet and capital markets expertise are expected to bring immediate benefits to Cowen’s existing client base.
“Cowen is a leading independent dealer with a premier US equities business and a strong, diversified investment bank that, when combined with TD Securities, will allow us to accelerate our strategic U.S. growth plans,” said Bharat Masrani, broup president and CEO at TD Bank Group, in a statement. “Most importantly, the acquisition will provide new capabilities and increased depth in key business lines to meet our clients’ needs and will allow us to leverage our combined expertise, talent, and integrated offerings across a much larger client base.”
Once the transaction closes, Jeffrey Solomon, chair and CEO of Cowen, will join the senior leadership of TD Securities, reporting to Riaz Ahmed, president and CEO, TD Securities and group head, Wholesale Banking, TD Bank Group. Post-closing, parts of the combined business will be known as TD Cowen, a division of TD Securities, and will be headed by Solomon.
“At Cowen our success comes from striving to outperform in all we do by exceeding expectations and providing innovative solutions to, and partnering with, our clients. Taking this step will make us even stronger and more effective in serving their growing needs,” said Solomon in a statement. “The strategic decisions and focused investments that we have made over the last few years have positioned Cowen for this exciting next chapter of our growth. I look forward to having our exceptional talent and valued clients join the TD family. We plan to do great things together because we are aligned with our cultural values of vision, empathy, sustainability, and tenacious teamwork.”
“Together, we will have more than 6,500 professionals in 40 cities across the globe, extending our reach into new industry coverage areas and building even deeper, long-term client relationships,” said Ahmed in a statement.