Robertson Stephens Brings M&A Muscle to BankBoston

BankBoston Corp. got a bonus from its recent $800 million acquisition of Robertson Stephens-a mergers and acquisitions advisory shop.

BankBoston bought the San Francisco securities firm from BankAmerica Corp. to quickly establish an equities underwriting capability. But the deal, which closed last month, also bolstered BankBoston's fledgling M&A group, bringing its staff of bankers to 60.

Now the directors of the combined M&A unit say they hope to capitalize on BankBoston's long-standing relationships in the leveraged buyout community. BankBoston was the first commercial banking company to establish its own private equity arm, about 30 years ago.

"To the extent that this environment is positive for any particular group of investors, it is the private equity funds," said Peter Lombard, a BankBoston managing director who is associate director of the new M&A shop.

Sharp declines in stock valuations over the last two months are making cash M&A transactions more attractive, said David Hetz, a managing director who came from Robertson Stephens and now heads the combined M&A group.

That will benefit advisory groups affiliated with a commercial bank, he said, because they can provide an acquirer with bank financing.

Robertson Stephens has made its reputation advising companies in the technology and health-care sectors, which also form the basis of the firm's equity underwriting business. In the overall M&A market, the combined BancBoston Robertson Stephens ranked 24th among advisers in the third quarter, working on 10 deals worth $1.5 billion, according to Securities Data Co.

The largest of these was the sale of a 28% stake in on-line trader E- Trade Group Inc. to Softbank Corp. for $398 million. Robertson Stephens advised E-Trade, with which the firm has a long-standing relationship.

Robertson Stephens' rank moved up six notches from a year earlier, when it advised on six deals valued at $1.4 billion. BankBoston, though it had a smaller M&A practice then, did no deals that quarter.

BankBoston has specialized in such northeastern staples as industrial growth companies and real estate.

But both groups, before their merger, catered to middle-market companies, advising on deals valued at $50 million to $300 million.

The bank now has about 60 M&A professionals, with by far the largest offices in San Francisco and Boston. Robertson Stephens also has two M&A professionals in New York and two in London. Mr. Hetz is considering expanding the London office.

Though neither side had dedicated M&A professionals in Latin America, both directors see this as an opportunity for expansion.

BankBoston, which has had a presence in Brazil for the past 50 years, has two bankers in its Sao Paulo office that have advised on some local mergers, Mr. Lombard said.

He sees a chance to build a business advising U.S. companies hoping to acquire Latin American business and in privatizations of Latin American companies.

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