Jimmy Dunne, Senior Managing Principal Sandler O’Neill and Partners
Adam Jeffery | CNBC
Piper Jaffray and Sandler O’Neill announced a merger agreement worth $485 million on Tuesday in a combination of two smaller, but prominent Wall Street investment banks.
Piper said it will pay $350 million in cash to Sandler equity holders at the time of closing.
Piper Jaffray, which has a market value of about $1 billion, will also pay $135 million in primarily restricted stock of Piper Jaffray to Sandler O’Neill employee partners.
The combined firm will be named Piper Sandler Companies. The transaction is expected to close in January 2020.
Shares of Piper Jaffray closed down 0.88% on Tuesday.
Piper Jaffray Chief Executive Chad Abraham will continue to lead the combined company and senior managing principle at Sandler O’Neill Jimmy Dunne will become Piper Sandler’s vice chariman and senior managing principal of the financial services business.
“We are excited to combine with Piper Jaffray and build…