Benzinga | Nov 23, 2021 09:05AM EST

Cowen Reports Will Buy Portico Capital Advisors, No Terms Disclosed

Cowen Inc. (NASDAQ:COWN) ("Cowen" or the "Company") today announced it has entered into a definitive agreement to acquire privately-held Portico Capital Advisors ("Portico"), a leading M&A advisory firm focused on the Verticalized Software, Data, and Analytics sector. The strategic acquisition positions Portico to provide the full breadth of Cowen's capital markets, advisory, and research capabilities to clients. The transaction also further accelerates Cowen's investment banking business, which has grown revenues over four-fold since 2017 by focusing on industries undergoing transformation. A primary value driver during this period was the significant growth of Cowen's M&A and Capital Markets Advisory practices, which collectively grew from approximately 20% to more than 55% of total banking revenues.

Portico was founded in 2000 and has a team of over 20 industry professionals in both the U.S. and the U.K., led by an executive committee with more than 120 years of collective industry experience. Portico's deep sector expertise, sell-side focus, and track record advising blue-chip companies and leading private equity firms have proven key differentiators among specialist M&A advisory firms. Through expert positioning, seamless transaction management, and differentiated buyer access, the firm has produced impressive results as it advises the disrupters shaping the information economy.

"Over the past 20 years, Rick Northrop, Searcy Dryden, and the Portico team have built the leading M&A advisory practice in Verticalized Software, Data, and Analytics -- a critically important, fast-growing, and dynamic sector that will underpin the global economy in the decades ahead," said Larry Wieseneck, Co-President of Cowen and Company. "By combining Cowen's broad advisory and capital markets capabilities with Portico's deep sector domain experience and M&A skill set, we are delivering on our stated strategy of building a world-class, diversified banking platform that will be even better positioned to help our collective clients outperform in sectors that have strong tailwinds. We are very excited to welcome Portico's world-class team into the Cowen family."

Searcy Dryden, Portico's Managing Partner, continued, "It's a tremendous opportunity for our clients and team to join forces with Cowen, a firm that always strives to be ahead of the curve, like Portico. The Verticalized Software, Data, and Analytics sector is driven by high-growth, cash-generating companies with significant M&A advisory and financing needs. With access to Cowen's broad relationships and extensive capital markets capabilities, we can deliver comprehensive solutions across significantly more situations, driving broader value for our corporate and sponsor clients."

Rick Northrop, Portico's Founder and Executive Chairman, added, "For two decades, the Portico team has focused on leveraging our deep sector expertise and relationships to deliver value for our clients through focus, experience, and guidance at every step of a transaction. We are delighted to enhance our ability to deliver high quality value to clients on the Cowen platform."

The definitive agreement has been approved by Cowen's Board of Directors and Portico's shareholders and governing bodies. All consideration is to be comprised of 75% cash and 25% stock. Other terms of the deal were not disclosed. This transaction is expected to close in the fourth quarter of 2021 and to increase Cowen's M&A advisory revenues by approximately 20% in fiscal 2022.

Perkins Advisors LLC acted as financial advisor to Cowen, and Willkie, Farr & Gallagher as legal advisor to Cowen. M. Klein & Company acted as financial advisor to Portico, and Cadwalader, Wickersham & Taft as legal advisor to Portico.