Cowen Inc. announced that it has completed its acquisition of Quarton International AG and affiliated Quarton entities (collectively, Quarton International), a leading global financial advisory company serving the middle market. The closing of this transaction creates a global, cross-border investment banking platform, with significantly expanded reach in the middle market and a full-service offering of public and private financing solutions across the capital structure.
Quartons substantial middle-market advisory business in Europe and the U.S., in combination with Cowens merger advisory and capital markets franchises, meaningfully scales our advisory business in a manner that will truly benefit our clients, said Jeffrey M. Solomon, Chief Executive Officer of Cowen. The closing of this transaction is a significant step towards Cowens goal of growing our higher margin advisory business as well as diversifying our revenues by industry.
Added Larry Wieseneck, Co-President of Cowen and Company, We are delighted to have the Quarton team join the Cowen family. Driven by a common entrepreneurial philosophy, we share the same client-centric approach. We look forward to delivering the full breadth of our combined platforms to Quartons clients.
Cowen and Quarton management are implementing a transition and integration plan to provide seamless service to the combined firms clients. Effective today, Quartons U.S. operations now operate under the Cowen brand; Quarton Europe is now Quarton, a Cowen Company.
Cowen acquired 100% of Quarton Internationals equity interests for upfront consideration of $75 million subject to certain net working capital and other customary adjustments, with additional contingent consideration of $40 million that will become payable dependent on the achievement of certain milestones by Quarton. In addition, Quarton and Cowen have established a retention bonus pool for previous Quarton International employees. All consideration, including pursuant to any employee retention program, is comprised of 80% cash and 20% Cowen Class A common stock.