TOKYO & NEW YORK--(BUSINESS WIRE)--Daiwa Securities Group Inc. (“Daiwa Securities Group”), in a move to capitalize on the anticipated growth in cross-border M&A transactions, has acquired through its wholly owned U.S. subsidiary just over a 20% equity interest in privately held Sagent Advisors Inc. (“Sagent”) for $52 million. Daiwa Securities Group will occupy two seats on Sagent’s seven person board and also plans to transfer its New York-based M&A team to Sagent.
In connection with the investment, Daiwa Securities SMBC Co. Ltd. (“Daiwa SMBC”), a joint venture between Daiwa Securities Group, one of Japan’s largest securities firms, and Sumitomo Mitsui Financial Group, Inc., one of Japan’s largest banking groups, has formed a business alliance with Sagent, which will add a focus on Japanese-related transactions to Sagent’s rapidly growing business in the North American market.
The Japanese market has become more open to foreign-originated deals by passing new laws to facilitate cross-border mergers and by promoting a global M&A culture. Japanese companies also face growing pressure to shed non-core businesses. The two partners, which have built a strong relationship over several years of collaborative work, believe that the alliance will play a key role in the growing volume of cross-border M&A transactions between North America and Japan.
The alliance provides Sagent with access to a broad and deep network of relationships in the top echelons of corporate Japan. Daiwa SMBC will gain capabilities and insight in the North American market through Sagent, whose conflict-free advisory services are enhanced by experienced bankers who have been involved in some of Wall Street’s largest and most complex transactions. The partnership will create substantial opportunities for the clients of both firms.
ABOUT SAGENT ADVISORS INC.
Sagent Advisors Inc. is an independent, privately owned investment banking firm dedicated to providing clients with high-quality M&A and other strategic financial advice. Contrary to industry norms, Sagent Advisors has no lending, trading, research or investing conflicts and no cross-selling pressures or other structural conflicts — offering only Pure Advice™ without bias toward a particular outcome. Companies hire Sagent Advisors for the firm’s experience, industry knowledge and senior attention. The firm’s managing directors average over 25 years in the investment banking industry and provide dedicated, hands-on involvement across client projects.
ABOUT DAIWA SECURITIES GROUP, INC.
Daiwa Securities Group Inc. is a public diversified financial services company (Tokyo Stock Exchange ticker 8601) that is engaged in four core businesses: retail securities, wholesale securities, asset management and investment. It is one of Japan’s largest securities firms, with revenue of $7.6 billion and ordinary income of $1.6 billion in fiscal 2006 (exchange rate: JPY120/$).
ABOUT DAIWA SECURITIES SMBC CO. LTD.
Daiwa Securities SMBC Co. Ltd. (Daiwa Securities SMBC) was formed through a strategic joint venture between Daiwa Securities Co. Ltd. (now Daiwa Securities Group Inc.) and The Sumitomo Bank, Limited (now Sumitomo Mitsui Financial Group, Inc.) in 1999 and became the first wholesale investment bank in Japan. Daiwa Securities SMBC is 60% owned by Daiwa Securities Group and 40% by Sumitomo Mitsui Financial Group. Since then, Daiwa Securities SMBC has established a strong track record in a broad range of areas, including investment banking services and sales & trading, by taking advantage of its strong relationships with most of the major companies in Japan. Daiwa Securities SMBC was first in the M&A Volume Rankings in Japan for 2006. Its revenues and ordinary income for fiscal 2006 were $2.6 billion and $0.8 billion, respectively (exchange rate: JPY120/$).