Citizens Financial Group entered into a definitive agreement to purchase substantially all of the assets of DH Capital, a private investment banking firm serving companies in the internet infrastructure, software and next generation IT services and communications sectors.
Headquartered in New York City with an additional office in Boulder, CO, DH Capital has completed more than 200 merger and acquisition transactions totaling approximately $35 billion in value.
“Clients view Citizens as a trusted strategic and financial partner committed to delivering complete solutions, quality execution and excellent service throughout their business life cycle,” Donald McCree, vice chairman and head of commercial banking at Citizens, said. “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.”
“We share Citizens’ vision to offer robust advisory capabilities with deep sector expertise, as well as their commitment to exceptional client solutions. Co-founder Joe Duggan, the rest of the team and I look forward to joining Citizens and continuing to provide trusted advice to a growing list of clients,” Adam Lewis, managing partner at DH Capital, said. “Coming together with Citizens will bring significant strategic benefits for our clients as we expand the service portfolio to include additional debt and equity financing solutions, as well as treasury services through a national network of culturally aligned commercial banking professionals.”
The DH Capital acquisition will bring additional digital infrastructure sector expertise to the Citizens M&A advisory team. It follows acquisitions earlier this year of JMP Group and Willamette Management Associates that also expanded Citizens’ corporate advisory team.
Citizens will fund the transaction with cash. Terms of the transaction, which is targeted to close in Q1/22, subject to regulatory approvals, were not disclosed. Under the terms of the agreement, Citizens’ wholly-owned subsidiary, Citizens Capital Markets (CCMI) will purchase substantially all of the assets of DH Capital and upon closing, DH Capital will operate as a division of CCMI.
Willkie Farr & Gallagher served as legal advisor to Citizens in connection with the transaction. Keefe, Bruyette & Woods represented DH Capital as financial advisor and Mayer Brown represented the company as legal advisor.