Credit Suisse Group of Zurich, Switzerland has agreed to purchase Donaldson, Lufkin & Jenrette of New York for $11.5 billion, or $90 a share, the companies announced last week.
Credit Suisse will acquire the nearly 70 percent interest AXA Financial of New York has in DLJ for $2.39 billion in cash and $5.75 billion in Credit Suisse Group stock, according to the companies. Combined, the firms will have nearly 26,500 employees and will manage $600 billion in assets.
"This transaction marks a defining moment in DLJ's distinguished 40-year history," said Mr. Joe L. Roby, chief executive officer of DLJ. "Combining these two great firms creates a global powerhouse with the platform, financial resources and intellectual capital to rival any financial services organization in the world. The goal is to create a dominant global presence that can compete with - and beat - the top firms."
Through the acquisition, Credit Suisse also acquires online broker DLJdirect of Jersey City, N.J., adding one million clients and $28 million in assets.