Cowen Group To Acquire Convergex For $116 Mln

Cowen Group Inc. said Monday it has agreed to acquire Convergex Group LLC from private-equity firm GTCR, Bank of New York Mellon Corp. and other shareholders for about $116 million. The deal will make Cowen the biggest independent trading platform for equities, with research and global execution capabilities, Cowen said in a statement. The companies had combined pro forma brokerage execution revenue of more than $400 million in 2016, it said. The deal is expected to boost economic income per share in 2018. The deal is expected to close by the end of the second quarter and is not contingent on the closing of the terms of Cowen's strategic partnership with China Energy Co. Ltd., which was announced last week. Cowen shares were halted premarket for the news, but are down 3% in the year so far, while the S&P 500 has gained 5%.