TD Bank to buy Wall Street investment bank Cowen for $1.3B

TD Bank had agreed to buy Cowen, a New York-based financial services firm, in an all-cash transaction valued at $1.3 billion, according to a Tuesday announcement.

The Toronto-based bank with U.S. headquarters in Cherry Hill will pay $39 per share of Cowen’s common stock. The deal, which has been approved by the boards of directors of TD and Cowen, is expected to close in the first calendar quarter of 2023.

“Cowen is a leading independent dealer with a premier U.S. equities business and a strong, diversified investment bank that, when combined with TD Securities, will allow us to accelerate our strategic U.S. growth plans,” TD Bank Group CEO and President Bharat Masrani stated.

With this acquisition, TD Securities will benefit from the addition of Cowen’s 1,700 talented colleagues and its leadership team.

Upon closing of the transaction, Jeffrey Solomon, chair and CEO of Cowen, will join the senior leadership of TD Securities, reporting to Riaz Ahmed, CEO and president, TD Securities, and group head, Wholesale Banking, TD Bank Group.

To leverage the strength of Cowen’s brand, post-closing, parts of the combined business will be known as TD Cowen, a division of TD Securities, and will be headed by Solomon.

“At Cowen, our success comes from striving to outperform in all we do by exceeding expectations and providing innovative solutions to, and partnering with, our clients. Taking this step will make us even stronger and more effective in serving their growing needs,” Solomon said.

“Together, we will have more than 6,500 professionals in 40 cities across the globe, extending our reach into new industry coverage areas and building even deeper, long-term client relationships,” Ahmed added. “I look forward to welcoming Jeff and his team to TD Securities and to the fantastic opportunities for growth we will create together.”

Perella Weinberg Partners LP served as financial adviser, and Simpson Thacher & Bartlett LLP and Torys LLP served as legal advisers to TD. Ardea Partners and Perkins Advisors LLC served as financial advisers, and Cravath, Swaine & Moore LLP served as legal adviser to Cowen.