The Carlyle Group is bolstering its financial advisory services with the acquisition of independent investment bank and valuation specialists Duff & Phelps.
As part of a consortium, that sees Carlyle team up with Stone Point Capital, Pictet & Cie and Edmond de Rothschild Group, they will acquire Duff & Phelps for $15.55 per share in cash, valuing the deal at approximately $665.5 million. No member of the consortium will own more than 35 percent of Duff & Phelps.
Assuming a better offer isn't made during a “go-shop” period, the transaction is expected to close in the first half of 2013 subject to customary closing conditions—including the receipt of stockholder and regulatory approvals.
“Regulatory demands, implementation of new accounting policies and requirements for increased corporate disclosure and third party validation provide significant growth opportunities for Duff & Phelps core products and services,” said Olivier Sarkozy, managing director and head of Carlyle's Global Financial Services group, in a statement.
Carlyle was not immediately available to comment beyond the statement at the time of press.
All of Duff & Phelps senior management team will continue to work at the company. However the company's board structure has changed with Carlyle and Stone Point adding two representatives each as well as three independent directors joining the board.
Carlyle are not the only large-cap firm to see opportunity in the ongoing regulatory onslaught as The Blackstone Group added to its European business and financial services holdings last month by agreeing to purchase Dutch trust company Intertrust Group for a reported €675 million from Waterland Private Equity Investments.