TD completes acquisition of Cowen to strengthen TD Securities’ global reach

Rick Steves

“We are very pleased to welcome Cowen to TD. Together, with greater scale, broader capabilities and deeper resources, we will continue to serve clients with excellence and accelerate the growth of TD Securities.”

Toronto-based TD has completed the acquisition of Cowen in a move that advances its long-term growth strategy in the United States and adds complementary products and services to TD Securities’ existing businesses.

Founded in 1918 in New York, Cowen provides investment banking, research, sales and trading, prime brokerage, outsourced trading, global clearing, and commission management services. Its global research franchise and capabilities in U.S. equities will prove valuable to TD, as well as its strong sales, trading and execution platform and deep relationships with corporate and financial clients across key growth verticals.

Cowen is positioned among the top 10 research platforms in the U.S. by both stocks under coverage and number of publishing analysts.

Parts of the combined business will be known as TD Cowen while Jeffrey Solomon, Chair and CEO of Cowen, joins the senior leadership of TD Securities.

Opportunities ahead for TD Securities

Bharat Masrani, Group President and Chief Executive Officer, TD Bank Group, said: “We are very pleased to welcome Cowen to TD. Together, with greater scale, broader capabilities and deeper resources, we will continue to serve clients with excellence and accelerate the growth of TD Securities.”

Riaz Ahmed, President and CEO TD Securities, commented: “I’m incredibly excited to welcome Cowen’s talented colleagues and leaders to TD Securities and the broader TD team. Together, we’ll build for the future, energized by the opportunities ahead for TD Securities, our clients and our 6,500 combined colleagues.”

Jeff Solomon, Chair and CEO of Cowen, said: “We are thrilled to be part of TD. We are united in our drive to outperform for our clients — bringing the best of our combined expertise and talented teams. Our teams share a common vision and dedication to our clients and their success, and we look forward to building for the future together.”

The all-cash transaction valued at US$1.3 billion was first announced in August 2022. The purchase price represents a 1.7 times multiple of Cowen’s tangible book value as of March 31, 2022 and a 8.1 times multiple of Cowen’s 2023 earnings.

The Canada-based bank expects to achieve US$300-350 million in revenue synergies by year three. TD expects to incur total pre-tax integration and retention costs of approximately US$450 million over three years.

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