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Banks (Finance)

Citizens Financial Group to Acquire JMP Group in $149 Million All-Cash Transaction

Strategic Insights

— 1 min read

Citizens Financial Group, a leading financial institution, has entered into a definitive merger agreement to acquire JMP Group, a highly regarded capital markets firm, in an all-cash transaction valued at $149 million. The acquisition is expected to deepen Citizens' expertise in healthcare, technology, financial services, and real estate sectors, further expanding its corporate finance and strategic advisory capabilities.

Key Takeaways:

  • The acquisition of JMP represents an attractive opportunity for Citizens to broaden its capabilities and customer base in its commercial banking segment.
  • JMP's talent and institutional equities franchise align well with Citizens' sector-focused corporate banking philosophy.
  • The transaction brings a strong platform based in San Francisco and New York, expanding Citizens' range of services and national presence.
  • JMP shareholders will receive $7.50 for each common share they own, a 20% premium to the firm's 30-day average share price.
  • The merger agreement has been unanimously approved by the boards of directors of both companies, with the transaction targeted to close in the fourth quarter of 2021, subject to regulatory approvals and other customary closing conditions.
  • JMP's founders and executive management team, who own approximately 60% of the firm, are "energized" by the opportunity to provide new strategic advisory and equities capabilities to Citizens' corporate client base.
  • The acquisition strengthens Citizens' capabilities in high-growth sectors, adding a wealth of talented bankers and an institutional equities franchise.
  • Citizens' chairman and CEO, Bruce Van Saun, stated that the acquisition further strengthens its growing corporate finance and strategic advisory capabilities, with a focus on high growth and compelling industry sectors.

Statistics:

  • $149 million: the value of the all-cash transaction.
  • $7.50: the amount each JMP shareholder will receive for their common shares.
  • 60%: the equity stake owned by JMP's founders and executive management team.
  • 25%: the premium to JMP's 30-day average share price.
  • 4Q 2021: the targeted closing date for the transaction, subject to regulatory approvals and other customary closing conditions.

Sources:

  • Citizens Financial Group, Inc. (NYSE: CFG)
  • JMP Group LLC (NYSE: JMP)
  • Businesswire (https://www.businesswire.com/news/home/20210908005552/en/)
  • JMP Group website (https://www.jmpg.com/press-releases/)
  • Citizens Financial Group website (https://www.citizensbank.com/about-us/investor-relations/news-and-events/2021)

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