UK-based advisory firm Robey Warshaw to be acquired by Evercore
Evercore, a leading independent investment bank, has agreed to acquire Robey Warshaw, a renowned UK-based independent advisory firm, for a consideration of £146m ($196m). The acquisition, expected to be completed in the second quarter of 2023, is subject to customary closing conditions and regulatory approvals.
Founded in 2013, Robey Warshaw is known for its boutique advisory services catering to prominent multinational companies across Europe. This acquisition aligns with Evercore's goal to bolster its European operations, particularly in the context of a potential deal-making boom in the region.
Enhanced Growth Strategy
The acquisition is expected to accelerate Evercore's growth strategy by integrating Robey Warshaw's strong client base and advisory capabilities. This will strengthen Evercore's position in Europe and allow it to capture more market share ahead of a potential surge in European deal-making.
Improved Market Presence
The combined entity will significantly increase Evercore's presence in the UK and improve its ranking in European M&A advisory services. Evercore currently holds about 3.3% of the market share in Europe, and this acquisition aims to elevate its standing in the region.
Increased Global Reach
The acquisition will provide Robey Warshaw's clients with access to a broader range of global services and expertise, enhancing their ability to navigate complex transactions across multiple regions, including Europe, the Middle East, Africa, and globally.
Financial Impact
The deal is anticipated to be accretive to Evercore's Adjusted and GAAP earnings per share in the first full year following the acquisition. This suggests that the integration is expected to yield financial benefits for Evercore's shareholders.
Cultural Alignment
The acquisition aligns well with both firms' commitments to client service, excellence, integrity, and independent advice, ensuring a smooth transition and continued high-quality service for clients. Robey Warshaw co-founder Simon Robey admires Evercore's growth and shares these commitments.
Robey Warshaw's impressive client base includes several multinational corporations. The transaction includes the possibility of additional consideration based on Robey Warshaw's performance over a set period following the acquisition. The deal is structured to be completed in two payments, the first in Evercore stock at the deal's closing, and the second scheduled for the one-year anniversary, to be paid in either stock or cash as determined by the two parties.
Evercore chairman and CEO John Weinberg states that Robey Warshaw brings "extraordinary, long-standing relationships with some of the world's leading multinational companies." The acquisition of Robey Warshaw will expand Evercore's regional team to more than 400 bankers across nine countries. The acquisition is a strategic move to strengthen Evercore's position in the European market.
The acquisition is expected to be completed at the beginning of the fourth quarter of 2023. The deal marks a significant step in Evercore's growth strategy and its commitment to providing exceptional advisory services to its clients.
The acquisition of Robey Warshaw will enable Evercore to augment its growth strategy by leveraging Robey Warshaw's strong client base and advisory capabilities, creating a more formidable presence in the European market and enhancing its position as a key player in the finance industry. Additionally, the integration of AI-driven wealth management practices, a specialty of Robey Warshaw, could position Evercore as a pioneer in the AI sector of the business world.
