To strengthen its position in the capital markets, U.S. Bancorp announced on Tuesday that it would purchase Wall Street brokerage BTIG for up to $1 billion in cash and stock.
As the lender expands beyond its usual banking services, the agreement will enable it to use BTIG’s strengths in investment banking, institutional sales and trading, research, and prime brokerage.
Stephen Philipson, head of wealth, corporate, commercial, and institutional banking at U.S. Bancorp, stated, “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.”
The two companies have a long history together; since 2014, BTIG has been the bank’s referral partner for equities capital markets.
In addition to an upfront payment of $725 million in cash and shares, U.S. Bancorp will pay an additional $275 million in cash over three years, based on satisfying performance goals.
Although USB undoubtedly has capital markets capabilities, they have generally been far more constrained than those of a number of competitors.
According to Piper Sandler analysts, this deal completes USB’s products and makes them more competitive with those of other major banks.
In addition to providing U.S. Bancorp with additional capabilities in equity capital markets, mergers and acquisitions advising, and equity trading, the agreement will increase the lender’s yearly revenue by around $750 million, mostly in fees.
BTIG was established in 2005 and currently works in 20 cities around the United States, Europe, Asia, and Australia.
Since 2015, the company, under the leadership of CEO Anton LeRoy, has participated in over 1,275 disclosed investment banking deals.
The management team of BTIG will continue to oversee the company after joining U.S. Bancorp.
The deal, which is anticipated to be completed in the second quarter of 2026, was advised by BTIG, Goldman Sachs, and Sheumack GMA.
