Energy Banking Group Scooped Up In Multi-Million Dollar Deal

In a twist to all the industry talk of oil and gas companies merging and acquiring one another, an energy-focused investment bank has been scooped up by a larger capital group.

Houston-based Simmons & Company International has accepted Piper Jaffray Cos’ $139 million offering, with $91 million in cash and $48 million in restricted stock. The firm will pay out another $21 million in staff incentives.

Piper CEO Andrew Duff said in a Nov. 17 conference call that energy remains a dynamic market despite the current downturn. The deal is expected to close in the first quarter of 2016, and will be Piper’s first foray into energy investing. In recent years, the firm has committed to a goal of $500 million in annual investment banking revenue.

“We recognize that we’re stepping into a difficult part of the cycle, but the long-term prospects and fit is very appealing to us,” he said.

Simmons has 170 investment banking, sales and trading, equity research and private equity professionals. Some key Simmons experts have entered into employment agreements that become effective with the transaction’s close.

Simmons CEO Michael Frazier said in a note to investors the deal won’t impact its regular operations because Piper Jaffray doesn’t have a presence in the energy space. As part of the deal, Simmons will maintain its brand name and operate as a relatively autonomous group.

“This transaction is a logical step in taking our firm to the next level as we expect our entire investment banking and equities groups to transition to Piper Jaffray in a seamless manner,” he said.

In the last fiscal year ending in June, Simmons’ revenue reached $96 million. In its 41 years, Simmons has executed more than 830 strategic advisory transactions and more than 330 private and public financings. Piper’s current investment banking team generated $300 million in revenue, Duff said.

An award-winning journalist, Deon has reported on energy, business and politics for almost 20 years. Email Deon at deon.daugherty@rigzone.com

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE

More from this Author
Deon Daugherty
Senior Editor | Rigzone
 -  Canada Oil, Gas Assets Beat US in Clas... (Jun 20)
 -  BLOG: Day Of Reckoning in 2018? US Rig... (Jun 20)
 -  Mexico Whets Foreign Oil, Gas Appetite... (Jun 19)
 -  BLOG: Federal Court Ruling Resurrects ... (Jun 15)
 -  Op-Ed: $1 Trillion on the Line, and Sa... (Jun 13)


Most Popular Articles

From the Career Center
Jobs that may interest you
Sr. Business Intelligence Engineer
Expertise: HR - General|IT - SAP / ERP|PR / Corporate Communications
Location: Chesterfield, MO
 
MANAGER*PORTFOLIO, ASSOC PRODU - COS106 Job
Expertise: Marketing|PR / Corporate Communications
Location: Minneapolis, MN
 
Landman / STEM Lease Specialist
Expertise: Landman
Location: Denver, CO
 
search for more jobs

Brent Crude Oil : $45.54/BBL 0.70%
Light Crude Oil : $43.01/BBL 0.63%
Natural Gas : $2.929/MMBtu 1.34%
Updated in last 24 hours