SVB Financial (SIVB) acquires technology equity research firm


Continuing its expansion efforts in technology investment banking, SVB Financial Group SIVB acquired an independent New York-based research firm, MoffettNathanson LLC. MoffettNathanson is known for his coverage of high growth disruptive companies in the media, communications and technology industries.

MoffettNathanson was founded in 2013. Since then, it has been regarded as the flagship of technology equity research.

Following the announcement of the acquisition, shares of SVB Financial gained 3.5%.

SVB Financial is a diversified financial services company operating through, among others, Silicon Valley Bank, its principal subsidiary, providing a wide range of banking and financial products and services.

SVB Financial provides commercial banking services through Silicon Valley Bank, investment banking services through SVB Leerink (Leerink Holdings LLC was acquired by SVB Financial in 2019), private banking and wealth management services through SVB Private Bank, and fund management and investment services through SVB Capital.

With the acquisition of MoffettNathanson, SVB Leerink (which currently provides investment banking services across all healthcare sectors) will be able to expand its research coverage beyond healthcare to also include companies in the technology sector.

Greg Becker, President and CEO of SVB Financial, said: “The MoffettNathanson team has built an incredible reputation as a leader in equity research. The addition of technology equity research is another important step in further consolidating our place as a vital partner of customers in the innovation economy. I am proud to welcome the MoffettNathanson team to SVB and continue to build the capacity of our investment banking business.

Craig Moffett, Founding Partner of MoffettNathanson, said: “Knowledge of the innovation economy is absolutely essential to understanding the sectors we cover. SVB’s close relationships with the world’s leading innovators will not only provide our clients with unique opportunities to participate in the value creation cycle of early-stage companies, they will also provide our analysts with unique insights into the strengths. competitions that will shape the fate of the largest companies in our coverage universe.

In particular, SVB Financial’s Technology Investment Banking team experienced solid growth, with additional hires in the Internet, consumer software / marketing, fintech and enterprise software sectors.

Our opinion

SVB Financial has made efforts to expand globally. While its operations in the UK and Asia appear to be expanding, businesses in Canada and Germany are expected to further increase their revenues.

In July 2021, it acquired Boston Private, which should further strengthen its private banking and wealth management offerings. Last year, SVB Financial acquired the debt investing business of WestRiver Group. These agreements will likely continue to support its leading position among providers of innovative business finance solutions.

Over the past year, shares of SVB Financial have gained 91.9% against a growth of 52.5% in the industry.

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Currently, SVB Financial holds a Zacks Rank # 3 (Hold). You can see The full list of Zacks # 1 Rank (Strong Buy) stocks today here.

Inorganic growth efforts of other companies

Several companies in the financial sector are undertaking consolidation efforts to counter the environment of low interest rates and rising costs of investing in technology.

A few days ago, United Bankshares, Inc. UBSI has announced that it has entered into a merger agreement with Community Bankers Trust Corporation. Last June, United Bankshares entered into an all-stock deal to acquire Community Bankers, the parent company of Essex Bank.

The takeover brought together two very successful banking companies. It strengthens United Bankshares’ position as one of the largest and most successful regional banking companies in the Mid Atlantic and South East. The combined entity will now operate at 250 sites in opportunistic markets in the United States.

Last month, CVB Financial Corp. CVBF, the holding company of Citizens Business Bank, announced that Citizens has received regulatory approvals from the Federal Deposit Insurance Corporation and the California Department of Financial Protection and Innovation to complete its previously announced merger agreement with Suncrest Bank. The $ 204 million share purchase transaction is expected to close on or around January 7, 2022, subject to the satisfaction of all remaining closing conditions.

In an effort to expand its presence, CVBF announced the deal and the reorganization and merger plan in July, under which Suncrest Bank would merge with and into Citizens. The acquisition is the second largest in the history of CVB Financial.

Citizens Financial Group, Inc. CFG also completed its previously announced merger with JMP Group LLC. Citizens Financial announced the cash deal in September to expand its capabilities in the capital market.

The buyout is expected to foster growth, diversify Citizens Financial’s capital market platform, and provide greater scale in key verticals such as healthcare, tech, finance and real estate.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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