Piper Jaffray swoops on energy bank Simmons

Simmons is one of the largest independent investment banks specialising in the energy sector

Piper Jaffray said it intends to operate the business under the Simmons brand as a Piper Jaffray company and will continue to run its energy practice from Simmons’ offices in Houston, Texas and Aberdeen.

Founded in 1974, Simmons is one of the largest independent investment banks specialising in the energy industry, advising on mergers & acquisitions and providing investment research.

It has more than 170 staff and has been involved in over 1,100 deals in the sector with a total transaction value of about $260 billion.

Simmons also manages two private equity funds in the UK that specialise in energy.

Andrew Duff, chairman and chief executive of Piper Jaffray, said: “This addition represents a major step in our drive towards $500m in annual investment banking revenue.”

Michael Frazier, Simmons’ chairman and chief executive, said the bank’s clients would “greatly benefit from the enhanced breadth of products and capabilities that Piper brings to the table”.

Aberdeen-based Colin Welsh will become head of international energy investment banking and executive chairman of Piper Jaffray’s UK subsidiary.

Under the deal, the US giant is paying $91m in cash and $48m in shares for Simmons. It has also committed an additional $21m in cash and shares to retain key staff.