By Arasu Kannagi Basil and Pritam Biswas Jan 13 (Reuters) – U.S. Bancorp said on Tuesday it would buy Wall Street brokerage BTIG for up to $1 billion in cash and stock, snapping up a partner to bolster its capital markets presence. The deal will help the lender tap into BTIG’s strengths in investment banking, […]
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U.S. Bancorp deepens capital markets presence with up to $1 billion BTIG buy
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By Arasu Kannagi Basil and Pritam Biswas
Jan 13 (Reuters) – U.S. Bancorp said on Tuesday it would buy Wall Street brokerage BTIG for up to $1 billion in cash and stock, snapping up a partner to bolster its capital markets presence.
The deal will help the lender tap into BTIG’s strengths in investment banking, institutional sales and trading, research and prime brokerage as it diversifies beyond its traditional banking services.
“BTIG’s addition to U.S. Bancorp is a strategic move to fill key product gaps for our corporate and institutional clients, enabling us to offer a more comprehensive suite of capital markets services,” said Stephen Philipson, head of wealth, corporate, commercial and institutional banking at U.S. Bancorp.
The two firms have a long-standing relationship, with BTIG serving as the bank’s equity capital markets referral partner since 2014.
U.S. Bancorp will pay $725 million in cash and stock upfront, plus up to an additional $275 million in cash over three years, contingent on meeting performance targets.
“While USB certainly has capital markets capabilities, they have historically been much more limited than those of several peers. This transaction therefore rounds out USB’s offerings to become more competitive with those of other large banks,” Piper Sandler analysts said.
The deal will give U.S. Bancorp new capabilities in equity capital markets, mergers and acquisitions advisory, and equity trading, while adding roughly $750 million in annual revenue to the lender, mainly in fees.
Founded in 2005, BTIG operates across 20 cities in the U.S., Europe, Asia and Australia. The company, led by CEO Anton LeRoy, has been part of more than 1,275 announced investment banking transactions since 2015.
BTIG’s leadership team will join U.S. Bancorp and continue to lead the business.
BTIG, Goldman Sachs and Sheumack GMA were the advisers on the transaction, which is expected to close in the second quarter of 2026.
(Reporting by Arasu Kannagi Basil and Pritam Biswas in Bengaluru; Editing by Shilpi Majumdar and Sriraj Kalluvila)