Canaccord Genuity Group has acquired investment bank Petsky Prunier and all of the firm’s partners have entered into employment agreements with Canaccord Genuity.
Under the terms of the agreement, Canaccord Genuity acquired 100% of the business of Petsky Prunier via an asset purchase for initial consideration of US$30 million in cash and US$15 million in common shares of Canaccord Genuity Group that will be issued over a three-year period. Additional contingent consideration of up to US$40 million can be earned over the next four years upon the attainment of certain revenue targets. Last year Petsky Prunier had annual revenues of US$43 million.
Petsky Prunier provides investment banking services to the mid-market technology, media, marketing, information, e-commerce, and healthcare industries. In 2018 the firm closed more than 30 advisory transactions for mid-market companies and the firm has achieved a number one ranking by Bloomberg for the number of Mid-Market internet and advertising transactions in the United States for seven consecutive years. Petsky Prunier was founded in 1999 and is headquartered in New York (www.petskyprunier.com).
“On behalf of my partners and especially our founders Michael Petsky and John Prunier, we are pleased to have found an enterprise that is a natural fit with the strong culture and excellent reputation that we have built at Petsky Prunier,” said Sanjay Chadda, partner and managing director of Petsky Prunier. “Canaccord Genuity provides an ideal partnership structure and a strong, independent platform for our growth, as we continue to create outstanding value for the business owners and private equity firms that we serve.”
Mr. Chadda will join the management operating committee of Canaccord Genuity and he will co-lead the US investment banking group and the US technology, media, marketing and information services practice. All existing employees of Petsky Prunier will continue with the combined firms.
“Our US capital markets business has become an increasingly stronger regional competitor and this acquisition advances our priority of investing in areas of higher margin potential, as we continue to position our company for increased stability and long-term profitability,” said Dan Daviau, president and CEO of Canaccord Genuity. “The addition of Petsky Prunier creates an exceptional opportunity for our North American capital markets business, while simultaneously enhancing long-term value for our partners and shareholders.”
Canaccord Genuity Group (TSX: GF) is a full-service investment banking and financial services company that specializes in wealth management and capital markets. The firm provides mergers and acquisitions, corporate finance, restructuring, debt advisory and strategic advice for corporate, government and private equity clients globally. Canaccord Genuity is headquartered in Toronto with additional offices in Canada, the US, the UK, France, Ireland, Israel, Hong Kong, China, Singapore, Australia and Dubai (www.canaccordgenuitygroup.com).
Freeman & Co. (www.freeman-co.com) was the financial advisor to Petsky Prunier and legal advice was provided by Winston and Strawn (www.winston.com). Legal advisors to Canaccord Genuity were Debevoise & Plimpton (www.debevoise.com).
© 2019 Private Equity Professional | February 14, 2019