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Citizens Financial (CFG) Completes Acquisition of DH Capital

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Citizens Financial Group, Inc. (CFG - Free Report) announced that it completed the acquisition of DH Capital LLC, a private investment banking firm. The buyout was announced last December. It enhances CFG’s corporate advisory capabilities.

DH Capital caters to companies in the Internet infrastructure, software and next-generation IT services, and communications sectors. It has completed more than 200 merger and acquisition transactions, aggregating $35 billion in value.

The acquisition deepens Citizens Financial’s mergers and acquisitions Advisory team’s expertise in the digital-infrastructure sector, thereby offering a more comprehensive set of solutions to clients.

When the deal was disclosed, it was announced to be funded with cash. Per the deal terms, Citizens Financial’s wholly-owned subsidiary, Citizens Capital Markets, Inc., was to acquire substantially all of the assets of DH Capital LLC, post which DH Capital was to operate as a division of Citizens Capital.

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.

The company has closed several major acquisitions in the last several years. In April, Citizens Financial completed the acquisition of Investors Bancorp for $3.39 billion, which strengthened its banking franchise and boosted the consumer customer base.

This February, CFG closed the acquisition of 80 East Coast branches and the national online deposit business from HSBC. The acquisitions of Investors combined with the HSBC branches create a strong franchise in the greater New York City and Philadelphia Metro areas, and in New Jersey by adding 234 branches. Apart from this, the acquisitions have strengthened the company’s balance sheet, creating a strong foundation for revenue growth.

In November 2021, the company closed the buyout of JMP Group in an all-cash transaction. Citizens Financial also closed the acquisition of Willamette in September 2021, which is expected to amplify its corporate financial advisory competencies. The buyout efforts enable the company to expand its product capabilities and geographic reach.

Over the past six months, shares of CFG have declined 14.8% compared with the 9.9% fall of the industry.

 

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Currently, CFG carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Inorganic Growth Moves by Other Firms

With a view to help clients build long-term financial wellness, Truist Financial Corporation (TFC - Free Report) acquired the award-winning gamified finance mobile app, Long Game. Long Game changes the way people engage with their banks. The mobile finance app uses prize-linked savings and casual gaming to motivate smart financial behavior.

Truist Financial is expected to use Long Game’s innovative technology to inspire and build better lives and communities.

Franklin Resources, Inc. (BEN - Free Report) , which operates as Franklin Templeton, entered an agreement with The Bank of New York Mellon Corporation (BK - Free Report) to acquire BNY Alcentra Group Holdings, Inc. from the latter. The closing of the deal, subject to customary conditions, including certain regulatory approvals, is expected early in the first quarter of 2023.

Through the acquisition, Franklin Templeton’s U.S. alternative credit specialist investment manager, Benefit Street Partners, will be able to expand its alternative credit capabilities and presence in Europe, doubling its AUM to $77 billion globally.

Upon the deal closure, BNY Mellon Investment Management is expected to continue to offer Alcentra’s capabilities in BNY Mellon’s sub-advised funds and select regions via its global distribution platform, and will provide Alcentra with ongoing asset servicing support.