Piper Jaffray Enters Definitive Agreement to Acquire BMO Capital Markets GKST 

Piper Jaffray Enters Definitive Agreement to Acquire BMO Capital Markets GKST, Bolstering Fixed Income Sales, Trading & Analytics Platform

Piper Jaffray Companies (NYSE: PJC), a leading investment bank and asset management firm, today announced that it has reached a definitive agreement with BMO Financial Group to acquire BMO Capital Markets GKST Inc., BMO’s municipal bond sales, trading and origination business.

The acquisition will add depth and breadth to the Piper Jaffray institutional sales, trading and underwriting platform. It will also strengthen the firm’s strategy and analytics capabilities as it continues to build out its financial institutions franchise.

“The fixed income business has been a longstanding and core focus for Piper Jaffray, and our commitment to sustainable growth led us to GKST,” said Piper Jaffray Companies chairman and CEO Andrew Duff. “We are pleased to acquire another Chicago-based business after announcing the River Branch Holdings transaction last week.”

“This acquisition represents a compelling strategic and cultural fit. GKST and Piper Jaffray have both cultivated a solid institutional business, rich history and client-centric, partnership culture,” said Brad Winges, head of fixed income services and head of firm investments & trading at Piper Jaffray. “Clients from both firms will benefit from broader product offerings and more robust analytical intelligence across a wider distribution network.”

“We believe that Piper Jaffray is well-positioned to make the necessary investments to provide optimal service to our GKST clients and the greatest opportunities for our people,” said Luke Seabrook, global head, trading products, BMO Capital Markets. “This transaction will enable BMO to focus its resources on growing our core U.S. businesses, including our institutional fixed income business, and strengthening relationships with our institutional clients. We look forward to working with Piper Jaffray in the coming months to help ensure a smooth and seamless transition.”

The transaction is subject to regulatory approval and customary closing conditions and expected to close in the fourth quarter of calendar year 2015. Terms of the transaction were not disclosed.

Source: Piper Jaffray

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