TOKYO (Reuters) - Daiwa Securities Group Inc (8601.T), Japan’s second-largest brokerage group, said on Thursday it will buy two boutique merger-and-acquisitions (M&A) advisory firms to strengthen its M&A operations in the United States.
Daiwa will acquire New York-based Sagent Advisors LLC, of it already owns 27 percent, and Baltimore-based Signal Hill Holdings LLC for an undisclosed amount. The Nikkei business daily reported the deal would be worth 10 billion to 11 billion yen ($90.10 million to $99.11 million).
The brokerage has said it is seeking to boost revenue from advising mid-sized enterprises and is looking to exploit the trend of Japanese companies investing in U.S. firms.
“Cross-border M&A involving Japanese corporates has grown significantly over the past 10 years and we believe that this transaction is an excellent opportunity to bolster our global advisory capabilities,” Chief Executive Seiji Nakata said in a statement.
Sagent’s clients include U.S. and international companies, middle-market firms, private-equity sponsors and family-owned and entrepreneur-led businesses. Signal Hill serves mainly growth companies.
Nomura Holdings Inc (8604.T), Japan’s biggest brokerage and investment banking group, is also looking to expand its M&A advisory business by hiring more bankers in the United States
Following the purchase, Daiwa’s global M&A advisory business will have more than $200 million in advisory revenue and over 200 senior bankers across 25 countries, it said in a statement.
Reporting by Thomas Wilson; Editing by Christopher Cushing