Evercore Partners (NYSE:EVR) has agreed to acquire International Strategy & Investment Group (ISI), a research-focused brokerage. The former will pay up to 8M of its shares for the business, valuing ISI at more than $400M - based on Evercore’s stock price of $50.13.
Evercore is only paying 30% of the total up front, with the remainder to be paid over five years if the business meets profitability targets.
As part of the transaction, Evercore intends to merge ISI with its own institutional equities business, a separate subsidiary which is 40%-owned by employees. More than 90% of the payment will go to ISI, which is majority-owned by founder Ed Hyman.
The deal is expected to be announced as soon as tomorrow.