By Mauro Orru 
 

Banco Santander SA has struck an agreement through its U.S. holding company Santander Holdings USA to acquire independent fixed-income broker dealer Amherst Pierpont Securities.

The Spanish bank said Thursday that Amherst Pierpont would join its corporate and investment banking global business line, following the acquisition of its parent holding company Pierpont Capital Holdings LLC for a consideration of about $600 million.

Amherst Pierpont has recorded an average return on equity of about 15% since 2016. In 2020, its return on equity stood at 28%, with an estimated return on risk weighted assets of 3%.

It has around 230 employees and more than 1,300 active institutional clients.

"This acquisition is consistent with our customer focused strategy and our commitment to profitable growth in the USA. It complements our product offerings and capabilities, allowing us to strengthen our relationships with our corporate and institutional clients," Santander Executive Chairwoman Ana Botin said.

Santander expects to close the transaction by the end of the first quarter of 2022.

The deal should add around 1% to group earnings per share and generate a return on invested capital of about 11% by the third year, shaving off 9 basis points from group capital at closing, Santander said.

 

Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94

 

(END) Dow Jones Newswires

July 15, 2021 12:41 ET (16:41 GMT)

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