U.S. Bancorp agreed to buy New York-based BTIG, which specializes in investment banking, trading, research and prime brokerage. The Minneapolis-based bank, which has more than 1,400 Charlotte-area employees, agreed to pay $725 million in cash and stock when the deal closes, plus another $275 million over the next three years, depending on meeting specified financial targets.
“BTIG’s top talent, capabilities and technology will position us for continued capital markets growth and deeper client relationships,” U.S. Bancorp CEO Gunjan Kedia said in a release. “This acquisition will enable both organizations to deliver greater value, innovation and efficiency to the companies and institutions we serve.”
BTIG CEO Anton LeRoy will retain his post and report to Stephen Philipson, who is vice chair and head of wealth, corporate, commercial and institutional banking at U.S. Bancorp. Philipson is based in Charlotte.
BTIG has more than 700 employees and offices in 20 cities in the U.S., Europe, Asia and Australia. Adjusted net revenue was about $750 million last year, the Wall Street Journal reported.
U.S. Bancorp has gradually built a capital markets business that had $1.4 billion in revenue in the 12 months through Sept. 30, reflecting a compound annual growth rate of 21% between 2021 and 2024. A major part of that effort involves the Charlotte staff, led by Philipson and Jimmy Whang, head of U.S. Bank Global Capital Markets.
“BTIG’s addition to U.S. Bancorp is a strategic move to fill key product gaps for our corporate and institutional clients, enabling us to offer a more comprehensive suite of capital markets services,” Philipson said. “At the same time, BTIG clients will gain access to U.S. Bancorp’s robust financial platform and extensive product set, including investment services, asset management, wealth management and payments.”
U.S. Bancorp is the fifth-largest U.S. bank, with assets of about $680 billion.
David Mildenberg is editor of Business North Carolina. Reach him at dmildenberg@businessnc.com.