Small investment banker Cowen Group Inc. reached a tentative deal valued at roughly $195 million to acquire asset manager Ramius LLC, to form an integrated financial services company.
Ramius is a privately-held asset manager with about $7.7 billion in assets under management. It includes hedge funds, funds of funds and real-estate funds.
Cowen in December rejected Rodman & Renshaw Capital Group Inc.'s unsolicited $99.7 million takeover offer, saying it wouldn't help shareholder value and there wasn't strategic rationale for it.
Ramius and an affiliate of an unnamed third-party investor will own 71% of the combined company, getting 37.5 million and 2.7 million shares, respectively. As part of the preliminary pact, Cowen would buy a 50% stake in a Ramius fund of funds that is owned by the third-party investor's affiliate.
Ramius founder Peter A. Cohen said there is "no signficant overlap" between the firms. He will serve as chairman and chief executive of the combined entity. Cohen CEO Greg Malcolm will head the broker-dealer subsidiary.
The deal is expected to close in the fourth quarter. The combined company will retain the Cowen name. Ramius will continue as the investment-advisory unit.
Credit Suisse Securities and Willkie Farr & Gallagher advised Ramius. Houlihan Lokey also provided certain financial advisory services to the firm. Sandler O’Neill & Partners and Wachtell, Lipton, Rosen & Katz advised Cowen on the deal.
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