Evercore Partners has signed an agreement to acquire 50% interest in G5 advisors, a Sao Paulo-based independent investment banking boutique and investment management firm.
Under the terms of the purchase agreement, Evercore will pay $20m in cash and securities at closing, with the potential for earn out payments based on performance through 2013.
Following the closing of the transaction, the partners of G5 advisors will own the remaining 50% of the company. Evercore will have an opportunity to acquire the remaining 50% beginning in 2014.
Initially, G5 and Evercore established a strategic alliance in 2008 and both have a strategic alliance with Mizuho. In addition, Evercore has an M&A strategic alliance with CITIC Securities.
Evercore president and CEO Ralph Schlosstein said that this transaction is an important part of a strategy to position Evercore’s Advisory business to capitalize on the increased globalization of mergers and acquisitions.
“We are fortunate to have worked closely with G5 advisors for the past two years and are pleased to welcome them more fully into the Evercore family,” Schlosstein said.
G5 advisors chairman and CEO Corrado Varoli said that the combined experience and expertise of the Evercore/G5 team will strengthen the position and enable to serve clients more broadly as Brazil and Latin America increase in significance in the global M&A marketplace.