Piper Jaffray Announces Merger with Sandler O’Neill
Piper Jaffray announced this week that it has entered into a $485 million merger agreement with Sandler O’Neill and Partners L.P. The merger will not only double revenues for Piper Jaffray’s fixed income business, but it will also give the Minneapolis-based company a new name: Piper Sandler Cos. Piper Jaffray’s purchase of Sandler O’Neill will include $350 million cash to Sandler O’Neill’s equity holders and $135 million in restricted consideration to Sandler O’Neill’s employee partners.
Piper Jaffray has been changing and developing as a business throughout the year. Earlier in the year, the company sold off its entire asset management business for $60 million. This recent merger means that Piper Jaffray’s CEO will continue leading the company, but Sandler O’Neill’s Senior Managing Principle will become Piper Sandler Cos.’ Vice Chairman and Senior Managing Principle of the financial services business. All of Sandler O’Neill’s partners have agreed to stay on after the merger as well.
Piper Jaffray is the 32nd largest public company in Minnesota, a spot it has held since April 2018. The company is following the footsteps of many in the banking industry, with mergers and acquisitions happening at a more frequent rate nationwide.
Mergers and acquisitions, both large and small, require a significant amount of planning and due diligence. Here at Wilkerson & Hegna, our attorneys offer a broad range of business services, including mergers and acquisitions, to help guide you through your business transactions.