JonesTrading Institutional Services said it signed a letter of intent to acquire Conifer Securities from the Conifer Group.
Conifer Securities will become a subsidiary of JonesTrading, with Conifer Group holding a minority stake. Conifer chief executive Jack McDonald will join JonesTrading's Board of Directors.
The transaction is expected to close in the fourth quarter of 2012. No financial terms were disclosed.
Conifer Group provides middle and back office support to independent money managers and fund companies.
Conifer Securities acts as an outsourcer, providing operational services such as prime brokerage, cloud-based reporting, global fund accounting and administration, trade execution, trade operations, compliance, corporate accounting, facilities and information technology.
JonesTrading will be able to offer prime brokerage services, as a result. The company currently helps institutions with block trading in securities and derivative products, capital markets services, independent research, and commission management.
The move boosts JonesTrading’s services to hedge funds and investment advisors. Conifer Group will use JonesTrading to expand its fund administration and middle office services for hedge funds and investment managers.
"The businesses of JonesTrading and Conifer Securities are complementary and the arrangement between our firms will not only make our respective clients' trading more effective but will add value to the entire investment cycle," said William (Packy) Jones, Chairman and CEO of JonesTrading.
"This partnership will provide a comprehensive and powerful set of tools that will enhance the superior trade execution services both firms currently provide," said Jack McDonald, President and CEO of The Conifer Group.