Evercore Partners agreed to acquire International Strategy and Investment Group, a research and trading business.
In an SEC filing Monday, Evercore said it would also acquire the 40% of its own institutional equity business it currently does not own from hedge fund manager River Birch Capital Partners and several employees of Evercore’s institutional equity business.
Evercore said it will issue 8 million shares, with as much as 70% of the payout tied to five-year performance targets, which would value the deal at about $440 million.
The combined business will be called Evercore ISI Institutional Equities.
Edward Hyman, chairman and founder of ISI, will become a vice chairman of Evercore and chairman of the combined equities business. He will chair an executive committee that includes Vinayak Singh, ISI president, and Charles Myers, senior managing director and head of Evercore institutional equities.
The deal is expected to close in the fourth quarter.