Freedom Holding, a diversified multi-national financial services firm, reached a definitive agreement to acquire Maxim Group and its registered investment advisory affiliate, Maxim Financial Advisors, for a combination of cash and common stock. Including deferred payments and retention bonuses, the total consideration for the acquisition will be approximately $400 million.
Maxim Group is a full-service investment bank headquartered in New York, that caters to emerging growth companies globally. Its business lines include investment banking, equity capital markets and institutional sales, equity research, merchant capital and corporate and wealth management services. Maxim Group’s corporate and institutional reach into Asia, Greece, Israel and most of Western Europe will complement Freedom’s brokerage and global distribution network. Together, the combined entity will provide a broad suite of product offerings to meet the needs of its diverse global client base.
“We are committed to growing our global footprint, and we recognize that having a significant U.S. presence is an important part of this strategy,” Timur Turlov, CEO of Freedom Holding, said. “Adding Maxim to our group as a trusted partner through this cornerstone transaction will turbocharge our growth as we continue to expand our U.S. operations.”
Once the transaction is complete, Robert Wotczak, CEO of Freedom’s U.S. operations, will be appointed executive chairman of Maxim Group and its subsidiaries, Clifford Teller will be promoted to CEO and Chris Fiore, one of the founders of Maxim Group, will remain as president.
“We look forward to building on Maxim’s history of success and consistent profitability in varying market conditions,” Wotczak said. “Having worked alongside many Maxim team members throughout my career, I have tremendous respect for and confidence in this team’s ability to accelerate growth across all business divisions.”
“We are looking forward to working with the Freedom team in building a world-class financial services company,” Teller said. “With Freedom’s differentiated distribution network, vast resources, and the synergies among the firms, Maxim will have the ability to expand exponentially in all areas of the investment bank while creating unique U.S. capital market solutions for our clients.”
“I am extremely proud of the success Maxim Group has achieved over its twenty-year history. Speaking for our senior management and all of our dedicated employees, we look forward to starting our next chapter and working with an exceptionally strong and talented partner in Freedom,” Michael Rabinowitz, chairman of Maxim Group, said.
