Piper Jaffray Cos. announced Monday that it had closed the sale of its brokerage business to UBS AG, the big Swiss banking company.
The Minneapolis investment bank said the sale generated $510 million in after-tax proceeds and a net gain of $170 million. It said it got $500 million for its network of brokers and advisers who work in 90 offices in 17 western and midwestern states, and $250 million for net assets under management.
UBS also agreed to pay $75 million based on the number of brokers who stayed on after the sale. It said in a press release that it has kept about 80% of Piper's brokers.
Piper said it would use $180 million of the proceeds to buy back its shares through the end of next year, $180 million to pay down subordinated debt, and the remainder to expand its investment banking business.
