Piper Jaffray Companies (NYSE:PJC)
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Piper Jaffray to Add Electronic Trading Capability; Signs
Definitive Agreement to Acquire Vie Securities, LLC
MINNEAPOLIS, Sept. 22 /PRNewswire/ -- Piper Jaffray Companies announced today
that it has signed a definitive agreement to acquire Vie Securities, LLC, the
broker-dealer subsidiary of parent Vie Financial Group, Inc., for a cash
purchase price of $15 million. Vie Securities is a leading provider of
algorithm-based, electronic execution services. This new capability will allow
Piper Jaffray to offer its institutional clients a full suite of trading
products, meeting the increased demand for automated, cost-effective execution
services. The transaction, which is expected to close in the fourth quarter of
2004, has been approved by holders of more than 96 percent of the outstanding
shares of common stock of Vie Financial Group and is subject to receipt of
certain approvals from the NYSE and the NASD. The transaction is expected to
have an immaterial effect on Piper Jaffray's earnings in 2004 and 2005, and be
accretive in 2006.
"After considerable market evaluation, we determined that Vie Securities was
the best strategic fit for our clients and our firm," said Andrew Duff,
chairman and CEO of Piper Jaffray Companies. "We will continue to offer high
quality, high touch trading execution and expect this new acquisition to be
complementary, fulfilling the increasing client demand for value-added,
algorithm-based trading services."
The acquisition includes proprietary algorithms, direct market access systems,
licensed trading technology, and approximately 25 employees based in New York,
who will transition to Piper Jaffray's New York office next year. Vie
Securities CEO Dean Stamos will continue to lead the business, reporting to
Mark Donahoe, head of Equity Trading at Piper Jaffray. Vie clients will
continue to receive service under the Vie name until the transaction closes.
"We are looking forward to this new relationship," said Dean Stamos, CEO of Vie
Securities, LLC. "Piper Jaffray's large base of buy-side clients, financial
strength, and client-focused, non-proprietary trading platform coupled with our
expertise in providing state-of-the-art electronic solutions make this a strong
strategic and cultural fit."
Piper Jaffray will offer the Vie Securities capability as part of its broader,
client-focused equity trading platform. In order to maintain confidentiality
of all client trading data, the electronic trading execution service will be
operated independently from the traditional market-making activities.
About Piper Jaffray Companies
Piper Jaffray Companies (NYSE:PJC) is a focused securities firm dedicated to
delivering superior financial advice, investment products and transaction
execution within selected sectors of the financial services marketplace. The
company operates through two primary revenue-generating segments: Capital
Markets and Private Client Services. Investment Research, an independent group
reporting to the CEO, supports clients of both segments. Through its chief
operating subsidiary, Piper Jaffray & Co., the firm has served corporations,
government and non-profit entities, institutional investors and the financial
advisory needs of private individuals since 1895. Headquartered in Minneapolis,
Piper Jaffray has approximately 3,000 employees in 111 offices in 23 states
across the country and in London. For more information about Piper Jaffray,
visit us online at http://www.piperjaffray.com/.
About Vie Financial Group, Inc.
Headquartered in New York City, Vie Financial Group, Inc. (OTC:VIFI) (BULLETIN
BOARD: VIFI) provides a suite of automated execution products to buy-side and
sell-side customers through its Vie Securities, LLC broker-dealer subsidiary.
These products employ both proprietary and licensed trading technology and
sophisticated trading algorithms that determine, in real time, the most
efficient manner to trade and secure the client benchmark for individual stocks
or baskets. Vie's algorithm-based systems apply powerful mathematical modeling
tools to the execution of clients' orders in the most efficient manner possible
by analyzing vast amounts of information and intelligently applying that
analysis to the trading process. Vie acts in both an agency and principal
capacity but has no proprietary trading desk.
Forward-Looking Statements
This press release contains forward-looking statements. Statements that are
not historical or current facts, including statements about beliefs and
expectations, are forward-looking statements. These forward-looking statements
cover, among other things, the future prospects of Piper Jaffray Companies,
including the effect of the acquisition of Vie Securities, LLC, on Piper
Jaffray's earnings. Forward-looking statements involve inherent risks and
uncertainties, and important factors could cause actual results to differ
materially from those anticipated, including the following: (1) costs or
difficulties relating to the integration of the Vie Securities and Piper
Jaffray businesses may be greater than expected, (2) Piper Jaffray may be
unable to achieve benefits relating to the acquisition as fully as expected or
within the expected time frame, and revenues may be lower than expected, (3)
developments in market and economic conditions have in the past adversely
affected, and may in the future adversely affect, Piper Jaffray's business and
profitability, (4) Piper Jaffray may not be able to compete successfully with
other companies in the financial services industry, (5) Piper Jaffray's
technology systems are critical components of its operations and the failure of
those systems may disrupt its business, cause financial loss and constrain its
growth, and (6) other factors identified in the document entitled "Risk
Factors" filed as Exhibit 99.1 to Piper Jaffray's Quarterly Report on Form 10-Q
for the quarter ended June 30, 2004, and in its subsequent reports filed with
the SEC. These reports are available at Piper Jaffray's Web site at
http://www.piperjaffray.com/ and at the SEC's Web site at http://www.sec.gov/.
Forward-looking statements speak only as of the date they are made, and Piper
Jaffray undertakes no obligation to update them in light of new information or
future events.
Since 1895. Member SIPC and NYSE.
DATASOURCE: Piper Jaffray Companies
CONTACT: Susan Beatty, Media Relations, Piper Jaffray Companies,
+1-612-303-5680
Web site: http://www.piperjaffray.com/