QUARTON INTERNATIONAL EXCITED TO BE COMBINING WITH
COWEN AND COMPANY

 

Quarton International Complements Cowen’s Full-Service Financial Services Offering and Strengths

Acquisition Creates Global, Cross-Border Investment Banking Platform with Significant Scale

Benefits of a Cowen / Quarton Combination

BANKING
OVERVIEW

  • 42 senior bankers
  • 138 total bankers
  • Sectors: Healthcare, TMT, Consumer, Industrials, Energy, Information Services
  • Offices: New York, San Francisco, Chicago, Houston

SELECT INVESTMENT BANKING STATISTICS (LTM 09/2018)

  • Economic Income Revenue: $317.0MM
  • 79% Capital Markets
  • 21% Advisory
  • ~150 Transactions

BANKING
OVERVIEW

  • 24 senior bankers
  • 61 total bankers
  • Sectors: Industrials, TMT, Business Services, Healthcare
  • Offices: Detroit, Leipzig, Indianapolis, Minneapolis, Munich, Frankfurt, Berlin, Graz, Zurich, London

SELECT STATISTICS (LTM 09/2018)

  • Unaudited Revenue: $45.9MM
  • 12% Capital Markets
  • 88% Advisory
  • ~50 Transactions

COMBINED BANKING OVERVIEW

  • 66 senior bankers
  • 199 total bankers
  • Sectors: Healthcare, TMT, Consumer, Industrials, Business Services, Energy, Information Services
  • Offices: New York, San Francisco, Chicago, Houston, Detroit, Leipzig, Indianapolis, Minneapolis, Munich, Frankfurt, Berlin, Graz, Zurich, London

COMBINED SELECT INVESTMENT BANKING STATISTICS (LTM SEPTEMBER 2018)

  • Unaudited Economic Income Revenue: $362.9MM
  • 70% Capital Markets
  • 30% Advisory
  • ~200 transactions

Transaction Highlights

TRANSACTION STRUCTURE

  • Cowen Inc. (“Cowen”) to acquire 100% of issued and outstanding equity of Quarton International (“Quarton”)
  • Expected to close by January 2, 2019

POSITIVE FINANCIAL IMPACT

  • Quarton expected initial annual revenue contribution: $45-50MM
  • Provides for a 60%+ increase in Cowen advisory revenues
  • Quarton expected initial Economic Operating Income contribution: $15-20MM
  • Meaningful anticipated near-term contribution to Cowen’s Economic Operating Income margin (~150 bps) and Return on Common Equity (~125-225 bps)

POSITIVE BUSINESS IMPACT

  • Combined strength of US and European M&A with particular focus on Industrials, TMT, Business Services and Healthcare
  • Expands US middle market sponsor reach
  • Meaningful global connectivity with sponsors and strategic acquirers
  • Shared client-centric cultural approach and values

RETENTION OF KEY PEOPLE

  • Entrepreneurial partnership structure in Europe remains unchanged and will be responsible for Cowen’s pan-European advisory business
  • Retention bonus pool to be established for Quarton employees

More information about the transaction can be found under

investor.cowen.com/events

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