The cash and stock deal has been struck with Convergex owners BNY Mellon and GTCR, a private equity firm.
Convergex is an agency-focused global brokerage and trading related services provider with a client base of 2,500 hedge funds, asset managers, broker-dealers, trusts and exchanges.
Its business units include equity sales and electronic trading, commission management, prime services and global clearing.
In a statement on the acquisition, Cowen said: “With combined pro forma brokerage execution revenues of over $400 million in 2016, the transaction solidifies Cowen as a clear leader in US trading volume and expands Cowen’s reach to 108 countries around the globe, including China.”
Cowen president Jeffrey Solomon said: “We are thrilled by today’s announcement and welcome Convergex’s extremely talented team to Cowen.”
“Together, our combined best-in-class global execution capabilities, along with Cowen’s high-quality research and corporate finance advisory services, will enable us to continue helping our clients to outperform in challenging markets.”
“The addition of Convergex’s global platform will also establish meaningful scale for Cowen’s equities business by significantly bolstering our capabilities in prime services, commission management, algorithmic and electronic trading, as well as clearing services.”
Eric Noll, president and CEO of Convergex Group, commented: ”The ability to combine with a great research based firm like Cowen, which has complementary businesses with minimal client overlap, creates a tremendous opportunity for our people and our clients.”