PROVIDENCE – Citizens Financial Group Inc. has entered into a definitive agreement to purchase JMP Group LLC, a capital markets firm, for roughly $149 million in cash, Citizens announced Wednesday.
“The acquisition of JMP represents an attractive opportunity for us to continue to broaden both our capabilities and our customer base in our commercial banking segment,” said Bruce Van Saun, chairman and CEO of Citizens in a statement. “The acquisition further strengthens Citizens’ growing corporate finance and strategic advisory capabilities, with a focus on high growth and compelling industry sectors.”
JMP is headquartered in San Francisco and specializes in investment banking services focused primarily in health care, technology, financial services and real estate. The firm provides strategic advisory, equity research, and sales and trading services. It will operate as a wholly-owned subsidiary of Citizens.
Citizens has agreed to purchase the company for $7.50 per diluted share.
The deal is still subject to regulatory approvals and the approval of JMP shareholders. However, Citizens noted that the JMP’s executive management and members of its board own 60% of outstanding shares.
The deal is expected to close in the fourth quarter of this year.
“We are adding a wealth of talented bankers as well as an institutional equities franchise that aligns well with our sector-focused corporate banking philosophy,” said Donald McCree, vice chairman and head of commercial banking at Citizens. “The transaction brings us a strong platform based in San Francisco and New York, expanding both our range of services and our national presence.”
