Piper Jaffray and Sandler O’Neill, two US-based investment banks, announced a $485m merger deal. Under the terms of the merger agreement, Piper Jaffray will acquire 100% of the equity and partnership interests in Sandler O’Neill. Piper Jaffray will pay $350m in cash to Sandler O’Neill equity holders at the time of closing; and $135m in restricted consideration, primarily in restricted stock of Piper Jaffray Companies. "Transactions in investment banking are always about the people and culture. We have a long history with Sandler O’Neill. We admire the quality of their professionals, the business they have built and the culture of the firm which is based on many values we share. Piper Jaffray is very focused on competing in market sectors where we can be a market leader and leverage our specific expertise. With Sandler O’Neill, we start with the market leader and could not be positioned better to compete in the financial services sector over time. This transaction strengthens, diversifies and accelerates the growth of the Piper Jaffray investment banking, capital markets and institutional distribution businesses," Chad Abraham, Piper Jaffray CEO.