Banc One Corp. said it has agreed to buy a small municipal bond broker and dealer for an disclosed price.
The purchase of Fitzgerald, Davis & Associates, a 12-member Chicago firm founded five years ago, is expected to close later this month.
Banc One officials said the acquisition would increase the Columbus, Ohio-based banking company's distribution and sales force in Chicago. However, the company doesn't expect it to significantly increase its underwriting business. Banc One said it is already a major underwriter of variable-rate municipal bonds.
Although Fitzgerald does some underwriting, the attraction to the company was more to increase sales and trading in the municipal secondary market.
The small firm was founded by James Fitzgerald and Robert Davis Jr. shortly after the two men left Kemper Securities Inc. The company will be folded into Banc One Capital Corp., a subsidiary of the $101.6 billion- asset banking company.