Investment banks Cenkos Securities and finnCap have agreed to merge in an all-share deal.
At the market close on Wednesday, both companies had a market value of around £21.1m.
They said in a statement on Thursday that there are “potentially significant cost synergies from common systems, processes, regulatory overlap and infrastructure, as well as clear future revenue potential through broader client reach and collaboration across equity and private capital market disciplines for the combined group”.
Under the terms of the merger, Cenkos shareholders will receive 3.19420647 new finnCap shares for each of their shares.
The combined group has more than 210 retained listed or quoted clients and employs more than 230 colleagues. It has more than £50m in proforma combined revenues and in excess of £20m on its balance sheet.
Cenkos chair Lisa Gordon said: “This proactive and mutually-beneficial merger creates a champion for growth and investment companies, both UK-quoted and private entrepreneurial businesses, that are the backbone of our economy.
“The two firms’ cultures are very similar, and our client lists and capabilities are complementary. This is good for our clients, our employees, our investors and the UK capital markets as a whole.”
The combined company will be led by the existing chief executives of Cenkos and finnCap. Lisa Gordon will become chair of the board, which will comprise equal numbers of finnCap and Cenkos directors.
