Citizens Financial Group, Inc. ( CFG Quick Quote CFG - Free Report) continues to enhance its growing corporate advisory capabilities. The company has announced a definitive agreement to acquire substantially all assets of DH Capital LLC. DH Capital is a New York-based private investment banking firm, catering companies in the Internet infrastructure, software and next-generation IT services, and communications sectors.
DH Capital has completed more than 200 merger and acquisition transactions, aggregating $35 billion in value.
The acquisition deepens Citizens Financial’s M&A Advisory team’s expertise in the digital-infrastructure sector, thereby, offering a more comprehensive set of solutions to clients. The move marks the company’s third acquisition over the past four months to augment its corporate advisory team. In September, the company closed the buyout of Willamette Management Associates and it acquired JMP Group in November.
The transaction will be funded with cash. The deal is anticipated to close in first-quarter 2022, subject to regulatory approvals. Per deal terms, Citizens Financial’s wholly-owned subsidiary, Citizens Capital Markets, Inc. (“CCMI”), will acquire substantially all of the assets of DH Capital LLC post, which DH Capital will operate as a division of CCMI.
Per Citizens Financial, “The DH Capital team brings us deep expertise in the digital infrastructure sector, a key and ongoing area of opportunity in today’s highly dynamic commercial market.”
The acquisition is also strategic for DH Capital as it expands its service portfolio to include additional debt and equity financing solutions, and treasury services through a national network of professionals.
A robust liquidity position has enabled Citizens Financial to pursue inorganic growth opportunities. Notably, as of Sep 30, 2021, the total available liquidity was $76 billion. As of the same date, long-term borrowed funds were $6.95 billion, significantly lower than liquidity.
Over the past six months, shares of Citizens Financial have gained 6.5% compared with 3.4% growth of the
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