Freedom Holding to acquire investment bank Maxim Group in $400m deal

Freedom Holding Corp., an American company providing financial services, has signed a binding agreement to purchase Maxim Group LLC and its registered investment advisory (RIA) affiliate Maxim Financial Advisors in a cash and stock transaction valued at up to $400 million.

The consideration includes deferred payments along with retention incentives.

Based in New York, Maxim Group is a full-service investment bank that serves emerging growth businesses globally. Its main business areas include investment banking, equity research, equity capital markets, institutional sales, merchant capital, wealth and corporate management services.

Maxim Group’s corporate and institutional reach across Asia, Israel, Greece, and most of Western Europe will be complementing the brokerage services and distribution networks of c across the world. Together, the two entities will offer a variety of products to fulfill the requirements of their global customer base.

Timur Turlov — Freedom Holding CEO said: “We are committed to growing our global footprint, and we recognize that having a significant U.S. presence is an important part of this strategy. Adding Maxim to our group as a trusted partner through this cornerstone transaction will turbocharge our growth as we continue to expand our U.S. operations.”

After the transaction is concluded, Robert Wotczak, the CEO of Freedom Holding’s US operations, will be made executive chairman of Maxim Group and its subsidiaries. Clifford Teller will be elevated to the role of CEO, while Chris Fiore, one of the founders of Maxim Group, will remain as the president.

Clifford Teller — Maxim Group President said: “We are looking forward to working with the Freedom team in building a world-class financial services company.

“With Freedom’s differentiated distribution network, vast resources, and the synergies among the firms, Maxim will have the ability to expand exponentially in all areas of the investment bank while creating unique U.S. capital market solutions for our clients.”

The completion of the transaction is subject to certain conditions, as well as the receipt of the necessary regulatory approvals.