Piper Jaffray Enters Definitive Agreement to Acquire BMO Capital Markets GKST, Bolstering Fixed Income Sales, Trading & Analytics Platform

MINNEAPOLIS--()--Piper Jaffray Companies (NYSE: PJC), a leading investment bank and asset management firm, today announced that it has reached a definitive agreement with BMO Financial Group to acquire BMO Capital Markets GKST Inc., BMO’s municipal bond sales, trading and origination business.

The acquisition will add depth and breadth to the Piper Jaffray institutional sales, trading and underwriting platform. It will also strengthen the firm’s strategy and analytics capabilities as it continues to build out its financial institutions franchise.

“The fixed income business has been a longstanding and core focus for Piper Jaffray, and our commitment to sustainable growth led us to GKST,” said Piper Jaffray Companies chairman and CEO Andrew Duff. “We are pleased to acquire another Chicago-based business after announcing the River Branch Holdings transaction last week.”

“This acquisition represents a compelling strategic and cultural fit. GKST and Piper Jaffray have both cultivated a solid institutional business, rich history and client-centric, partnership culture,” said Brad Winges, head of fixed income services and head of firm investments & trading at Piper Jaffray. “Clients from both firms will benefit from broader product offerings and more robust analytical intelligence across a wider distribution network.”

“We believe that Piper Jaffray is well-positioned to make the necessary investments to provide optimal service to our GKST clients and the greatest opportunities for our people,” said Luke Seabrook, global head, trading products, BMO Capital Markets. “This transaction will enable BMO to focus its resources on growing our core U.S. businesses, including our institutional fixed income business, and strengthening relationships with our institutional clients. We look forward to working with Piper Jaffray in the coming months to help ensure a smooth and seamless transition.”

The transaction is subject to regulatory approval and customary closing conditions and expected to close in the fourth quarter of calendar year 2015. Terms of the transaction were not disclosed.

About Piper Jaffray

Piper Jaffray Companies (NYSE: PJC) is an investment bank and asset management firm headquartered in Minneapolis with offices across the U.S. and in London, Hong Kong* and Zurich. Securities brokerage and investment banking services are offered in the United States through Piper Jaffray & Co., member NYSE and SIPC, and in Europe through Piper Jaffray Ltd., authorized and regulated by the Financial Conduct Authority. Asset management products and services are offered through three separate investment advisory affiliates registered with the U.S. Securities and Exchange Commission: Advisory Research Inc., Piper Jaffray Investment Management LLC and PJC Capital Partners LLC.

About BMO Capital Markets and BMO Financial Group

BMO Capital Markets is a leading, full-service North American financial services provider. With approximately 2,300 employees operating in 29 locations, including 16 in North America, BMO Capital Markets offers corporate, institutional and government clients access to a complete range of investment and corporate banking products and services. BMO Capital Markets is a member of BMO Financial Group (NYSE:BMO)(TSX:BMO), one of the largest diversified financial services providers in North America, with total assets of CDN $633 billion as of April 30, 2015, and more than 47,000 employees.

Advisors

Faegre Baker Daniels acted as legal advisor for Piper Jaffray. Berkshire Capital and BMO Capital Markets acted as financial advisors to BMO, and Mayer Brown LLP acted as its legal advisor.

* License pending

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Contacts

Piper Jaffray Companies
Pamela Steensland, 612-303-8185
pamela.k.steensland@pjc.com

Release Summary

The acquisition will add depth and breadth to the Piper Jaffray institutional sales, trading and underwriting platform.

Contacts

Piper Jaffray Companies
Pamela Steensland, 612-303-8185
pamela.k.steensland@pjc.com