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U.S. Bancorp to Expand Capital Markets Business With BTIG Acquisition
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Key Takeaways
USB agreed to acquire BTIG to expand its capital markets platform and better serve institutional clients.
USB will pay $725M at close plus up to $275M over three years, with BTIG leadership remaining in place.
U.S. Bancorp expects minimal 2026 EPS impact and about a 12-basis-point decline in CET1 capital at closing.
U.S. Bancorp (USB - Free Report) entered a definitive agreement to acquire BTIG, LLC for $1 billion. This stock and cash transaction will likely be closed in the second quarter, subject to regulatory approvals and fulfillment of customary closing conditions.
BTIG provides investment banking (IB), institutional sales and trading, research, and prime brokerage services. Since 2014, USB has had BTIG as the equity capital markets referral partner. The two firms further started a referral program in 2023.
USB CEO Gunjan Kedia said, "BTIG’s top talent, capabilities and technology will position us for continued capital markets growth and deeper client relationships. This acquisition will enable both organizations to deliver greater value, innovation and efficiency to the companies and institutions we serve."
This is a significant strategic move by U.S. Bancorp as it continues to expand its capital markets-based product set and revenues and support institutional clients in a better way. Also, new offerings such as institutional equity sales and trading, equity capital markets, equity electronic trading and mergers & acquisitions advisory are expected to further accelerate the company’s capital markets momentum.
USB-BTIG Deal Details & Financial Terms
As part of the deal terms, at close, U.S. Bancorp will pay a consideration of $725 million, consisting of $362.5 million in cash and approximately 6.6 million shares. An additional cash consideration of up to $275 million will be paid over three years, contingent on the achievement of defined performance targets.
BTIG’s senior leadership team will join U.S. Bancorp and continue to run the business. Anton LeRoy will remain CEO of BTIG, reporting to Stephen Philipson, vice chair and head of Wealth, Corporate, Commercial and Institutional Banking at U.S. Bancorp, while co-founder and executive chairman Steven Starker will continue to work on client relationships and business development.
The transaction is anticipated to have a minimal impact on USB’s earnings per share this year. Nonetheless, it will likely reduce the company’s Common Equity Tier 1 capital ratio by approximately 12 basis points at closing. Moreover, the deal will not affect the company’s near-term capital returns plan.
How Will the BTIG Deal Support USB’s Capital Markets Business?
Over the years, U.S. Bancorp has established a solid capital markets business, which is one of the major revenue growth drivers. With capital markets revenues of approximately $1.4 billion for the 12 months ended Sept. 30, 2025, and a three-year (2021-2024) compound annual growth rate of 21%, the company views this acquisition as a meaningful top-line driver. It will further strengthen its capital markets business.
BTIG ranks among the top 10 U.S. brokers for high-touch equity volume executed and has advised on more than 1,275 announced IB transactions since 2015. The firm, along with its affiliates, operates through more than 700 employees in 20 cities across the United States, Europe, Asia and Australia, and complements U.S. Bancorp’s existing business.
Overall, the BTIG acquisition is a disciplined move by U.S. Bancorp to achieve further traction in the capital markets business by filling key product gaps, enhancing client relationships, and positioning the franchise to leverage its scale, without losing capital strength or leadership continuity.
USB’s Price Performance & Zacks Rank
Over the past three months, shares of USB have gained 17.2% compared with the industry’s 18.4% increase.
On Jan. 2, 2026, Prosperity Bancshares, Inc. (PB - Free Report) completed the previously announced acquisition of American Bank Holding Corporation (“ABHC”) and its wholly owned subsidiary, American Bank. Operational integration of the merger is scheduled for September 2026.
Prosperity Bancshares announced the $321.5 million all-stock merger deal with ABHC on July 18, 2025, to significantly expand its presence across South and Central Texas markets, including Corpus Christi, San Antonio and Austin.
The PNC Financial Services Group, Inc. (PNC - Free Report) completed its acquisition of FirstBank Holding Company, including its banking subsidiary, FirstBank, after securing all required regulatory approvals. The acquisition significantly strengthens PNC’s presence in Colorado and Arizona, two of the fastest-growing banking markets in the United States.
With the transaction legally closed, PNC will begin the integration of FirstBank into its national operating platform. Customer account conversion is expected to take place in the summer of 2026. Until the conversion is completed, FirstBank clients will continue to access services through existing branches, digital platforms and relationship teams, ensuring operational continuity during the transition period.
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U.S. Bancorp to Expand Capital Markets Business With BTIG Acquisition
Key Takeaways
U.S. Bancorp (USB - Free Report) entered a definitive agreement to acquire BTIG, LLC for $1 billion. This stock and cash transaction will likely be closed in the second quarter, subject to regulatory approvals and fulfillment of customary closing conditions.
BTIG provides investment banking (IB), institutional sales and trading, research, and prime brokerage services. Since 2014, USB has had BTIG as the equity capital markets referral partner. The two firms further started a referral program in 2023.
USB CEO Gunjan Kedia said, "BTIG’s top talent, capabilities and technology will position us for continued capital markets growth and deeper client relationships. This acquisition will enable both organizations to deliver greater value, innovation and efficiency to the companies and institutions we serve."
This is a significant strategic move by U.S. Bancorp as it continues to expand its capital markets-based product set and revenues and support institutional clients in a better way. Also, new offerings such as institutional equity sales and trading, equity capital markets, equity electronic trading and mergers & acquisitions advisory are expected to further accelerate the company’s capital markets momentum.
USB-BTIG Deal Details & Financial Terms
As part of the deal terms, at close, U.S. Bancorp will pay a consideration of $725 million, consisting of $362.5 million in cash and approximately 6.6 million shares. An additional cash consideration of up to $275 million will be paid over three years, contingent on the achievement of defined performance targets.
BTIG’s senior leadership team will join U.S. Bancorp and continue to run the business. Anton LeRoy will remain CEO of BTIG, reporting to Stephen Philipson, vice chair and head of Wealth, Corporate, Commercial and Institutional Banking at U.S. Bancorp, while co-founder and executive chairman Steven Starker will continue to work on client relationships and business development.
The transaction is anticipated to have a minimal impact on USB’s earnings per share this year. Nonetheless, it will likely reduce the company’s Common Equity Tier 1 capital ratio by approximately 12 basis points at closing. Moreover, the deal will not affect the company’s near-term capital returns plan.
How Will the BTIG Deal Support USB’s Capital Markets Business?
Over the years, U.S. Bancorp has established a solid capital markets business, which is one of the major revenue growth drivers. With capital markets revenues of approximately $1.4 billion for the 12 months ended Sept. 30, 2025, and a three-year (2021-2024) compound annual growth rate of 21%, the company views this acquisition as a meaningful top-line driver. It will further strengthen its capital markets business.
BTIG ranks among the top 10 U.S. brokers for high-touch equity volume executed and has advised on more than 1,275 announced IB transactions since 2015. The firm, along with its affiliates, operates through more than 700 employees in 20 cities across the United States, Europe, Asia and Australia, and complements U.S. Bancorp’s existing business.
Overall, the BTIG acquisition is a disciplined move by U.S. Bancorp to achieve further traction in the capital markets business by filling key product gaps, enhancing client relationships, and positioning the franchise to leverage its scale, without losing capital strength or leadership continuity.
USB’s Price Performance & Zacks Rank
Over the past three months, shares of USB have gained 17.2% compared with the industry’s 18.4% increase.
Image Source: Zacks Investment Research
At present, USB carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Banks Engaged in Similar Activities
On Jan. 2, 2026, Prosperity Bancshares, Inc. (PB - Free Report) completed the previously announced acquisition of American Bank Holding Corporation (“ABHC”) and its wholly owned subsidiary, American Bank. Operational integration of the merger is scheduled for September 2026.
Prosperity Bancshares announced the $321.5 million all-stock merger deal with ABHC on July 18, 2025, to significantly expand its presence across South and Central Texas markets, including Corpus Christi, San Antonio and Austin.
The PNC Financial Services Group, Inc. (PNC - Free Report) completed its acquisition of FirstBank Holding Company, including its banking subsidiary, FirstBank, after securing all required regulatory approvals. The acquisition significantly strengthens PNC’s presence in Colorado and Arizona, two of the fastest-growing banking markets in the United States.
With the transaction legally closed, PNC will begin the integration of FirstBank into its national operating platform. Customer account conversion is expected to take place in the summer of 2026. Until the conversion is completed, FirstBank clients will continue to access services through existing branches, digital platforms and relationship teams, ensuring operational continuity during the transition period.