TOKYO -- Japan's Daiwa Securities Group is making further inroads abroad into mergers and acquisitions advisory services, with plans to spend a combined $100 million or more to place two U.S.-based players under its wing.
The company will announce as soon as Thursday plans to acquire Signal Hill, an American independent advisory that focuses on mergers and acquisitions in the technology sector. It has six branches across the U.S., including in New York and San Francisco, in addition to a joint venture in India.
Daiwa until now had handled most of its American deals through Sagent Advisors, in which it has a 27% stake. The U.S.-based company has strengths in the manufacturing sector. Acquiring Signal Hill will help the Japanese group tap the tech arena, previously a weak spot.
Daiwa is also turning Sagent into a wholly owned subsidiary, with plans to merge its operations with Signal Hill's. The two American companies together will have more than 100 employees. The group also employs 180 people under Daiwa Corporate Advisory in Europe.
With these deals, Daiwa will have established merger and acquisition advisory services in Japan, Europe and the U.S. In addition to transactions involving Japanese companies, the group aims to handle advisory functions between U.S. and European businesses as well.