Cowen Inc has completed its acquisition of Quarton International AG and affiliated Quarton entities, a global financial advisory company serving the middle market.
The closing of this transaction creates a global, cross-border investment banking platform, with significantly expanded reach in the middle market and a full-service offering of public and private financing solutions across the capital structure.
“Quarton’s substantial middle-market advisory business in Europe and the US, in combination with Cowen’s merger advisory and capital markets franchises, meaningfully scales our advisory business in a manner that will truly benefit our clients,” says Jeffrey M Solomon, Chief Executive Officer of Cowen. “The closing of this transaction is a significant step towards Cowen’s goal of growing our higher margin advisory business as well as diversifying our revenues by industry.”
Larry Wieseneck, Co-President of Cowen and Company, says: “We are delighted to have the Quarton team join the Cowen family. Driven by a common entrepreneurial philosophy, we share the same client-centric approach. We look forward to delivering the full breadth of our combined platforms to Quarton’s clients.”
Cowen and Quarton management are implementing a transition and integration plan to provide seamless service to the combined firm’s clients. Effective immediately, Quarton’s US operations now operate under the Cowen brand; Quarton Europe is now “Quarton, a Cowen Company.”
Cowen acquired 100 per cent of Quarton International’s equity interests for upfront consideration of USD75 million subject to certain net working capital and other customary adjustments, with additional contingent consideration of $40 million that will become payable dependent on the achievement of certain milestones by Quarton. In addition, Quarton and Cowen have established a retention bonus pool for previous Quarton International employees. All consideration, including pursuant to any employee retention program, is comprised of 80 per cent cash and 20 per cent Cowen Class A common stock.
