Piper Jaffray to Pay $21M for Seattle Public Finance Firm

The acquisition, which is expected to close in the second half of this year, will enhance Piper Jaffray’s municipal and public financial services.

Piper Jaffray Companies announced Wednesday that it has entered into an agreement to acquire Seattle-Northwest Securities Corporation, a Seattle-based public finance firm, for approximately $21 million.

The acquisition, expected to close in the second half of this year, will enhance Piper Jaffray’s municipal and public finance services. Seattle-Northwest specializes in underwriting municipal securities, and its sales and trading division distributes bonds nationwide. Additionally, the firm provides investment banking and asset management services.
Piper Jaffray said that it and Seattle-Northwest have minimal geographic and business overlap.
“A key part of our firm’s strategy is investing in our public finance business, and this represents a significant step forward in developing a national franchise for our business,” Andrew Duff, Piper Jaffray’s chairman and CEO, said in a statement.

Minneapolis-based Piper Jaffray, an investment bank and asset management firm, reported $489 million in 2012 revenue, making it one of the 50 largest public companies in Minnesota. It currently employs 911—and it will acquire Seattle-Northwest’s 70 employees, however, a spokeswoman for Piper Jaffray said there will be consolidations where roles overlap after the acquisition is completed.
Seattle-Northwest, founded in 1970, will merge into Piper Jaffray’s broker-dealer division. Over the past three years, Seattle-Northwest has averaged $17 million in annual revenue.
The acquisition is subject to approval by Seattle-Northwest shareholders, along with regulatory approvals and customary closing conditions.
A Piper Jaffray spokeswoman said it hasn’t yet been determined whether or not Seattle-Northwest will retain its own name.
Piper Jaffray operates out of 39 offices nationwide and two international offices in London, and Zurich, Switzerland.
Seattle-Northwest’s six offices in New York, Washington, Oregon, Idaho, Utah, and California will remain open following the acquisition, although Piper Jaffray will integrate the smaller Seattle-Northwest offices in New York and California into its larger offices.