TD Expands Investment Banking with Cowen Acquisition

TD Bank is expanding its investment banking capabilities with the acquisition of Cowen Inc. The deal is expected to strengthen TD's position in the US market, particularly in the area of corporate and investment banking.

TD Bank is a large Canadian bank with a significant presence in the US. Cowen Inc. is a US-based investment bank and financial services company.

The acquisition is expected to enhance TD's ability to provide a full range of financial services to its clients. This includes corporate lending, advisory services, and equity and debt capital markets activities.

Cowen Inc. has a strong reputation in the US investment banking market and brings a team of experienced professionals to the table.

TD Bank Group has completed its acquisition of Cowen Inc, a leading global financial services company, for approximately $1.3 billion.

The acquisition was announced in December 2021 and received regulatory approval in March 2022.

The combined company will have a presence in 15 countries, with over 15,000 employees.

The deal is expected to expand TD's global capabilities and enhance its investment banking and market access capabilities.

Cowen's institutional investor services business will become part of TD's corporate and investment banking division.

TD's acquisition of Cowen is a significant milestone in the company's growth strategy.

TD Bank is buying Cowen, a Wall Street brokerage firm, in a $1.3 billion all-cash deal expected to close in the first quarter of 2023.

The acquisition will add 1,700 Cowen employees to TD Securities, with Cowen CEO Jeffrey Solomon joining the senior leadership of TD Securities.

TD Bank is providing capital for the transaction by selling 28.4 million nonvoting common shares of its Charles Schwab stock for approximately $1.9 billion.

The deal value translates to $39 per share, and it reduces TD's ownership interest in Charles Schwab from approximately 13.4% to 12.0%.

TD plans to leverage the strength of Cowen's brand by naming parts of the combined business TD Cowen, a division of TD Securities, led by Solomon.

Here are the key details of the deal:

TD's acquisition of Cowen is a significant move, as the Canadian lender has been transparent about its ambition to grow southward. Bharat Masrani, TD's CEO, has been vocal about exploring major mergers and acquisitions in the U.S. market.

TD had been rumored to be in discussions to buy Cowen for the past month, and this deal is expected to close in the first quarter of 2023. The bank's acquisition of First Horizon Bank in a deal valued at $13.4 billion is also on track to close in the same quarter.

The $1.3 billion Cowen deal value translates to $39 per share, a significant investment for TD. This acquisition reduces TD's ownership interest in Charles Schwab from approximately 13.4% to 12.0%.

To leverage the strength of Cowen's brand, parts of the combined business will be known as TD Cowen, a division of TD Securities, led by Cowen CEO Jeffrey Solomon. This move will make TD even stronger and more effective in serving its clients' growing needs.

The acquisition will provide new capabilities and increased depth in key business lines to meet clients' needs, according to Masrani. This will allow TD to leverage its combined expertise, talent, and integrated offerings across a much larger client base.

Bharat Masrani called Cowen a "leading independent dealer with a premier U.S. equities business and a strong, diversified investment bank." He added that the acquisition will allow TD to accelerate its strategic U.S. growth plans.

Here's a breakdown of the key players involved in the acquisition:

TD Cowen acquisition is a significant development in the financial services industry. The acquisition was announced in February 2021, marking a major milestone for the company.

With a market value of over $1.3 billion, TD Cowen brings a substantial presence to the table. The acquisition is expected to enhance TD's equity research capabilities.

TD Cowen's strong reputation in the industry will undoubtedly bring benefits to TD. The company's experienced team will be integrated into TD's existing operations.

The acquisition is a strategic move to strengthen TD's position in the market. By combining forces, TD aims to improve its research and trading capabilities.