Multi-national financial services firm Freedom Holding plans to acquire Maxim Group and its registered investment advisory affiliate Maxim Financial Advisors for a combination of cash and common stock. Total consideration including deferred payments and retention bonuses will be approximately $400 million.
With this transaction, Freedom continues its strategy of acquisitions following the 2020 purchase of Prime Executions, an institutional trading firm with operations on the floor of the New York Stock Exchange which was recently approved to conduct investment banking and equity capital market businesses under Freedom Capital Markets.
Maxim is a full-service investment bank headquartered in New York that caters to emerging growth companies globally. Maxim is one of the biggest players in PIPE deals and microcaps. Its business lines include investment banking, equity capital markets and institutional sales, equity research, merchant capital, and corporate and wealth management services. Maxim Group’s corporate and institutional reach into Asia, Greece, Israel, and most of Western Europe will complement Freedom’s brokerage and global distribution network. Together, the combined entity will provide a broad suite of product offerings to meet the needs of its diverse global client base.
“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,” said Freedom CEO Timur Turlov. 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.”
Once the transaction is complete, Robert Wotczak, CEO of Freedom’s U.S. operations, will be appointed executive chairman of Maxim Group and its subsidiaries, Clifford Teller will be promoted to CEO, and Chris Fiore, one of the Founders of Maxim Group, will remain as president.
“We look forward to building on Maxim’s history of success and consistent profitability in varying market conditions,” Wotczak said. “Having worked alongside many Maxim team members throughout my career, I have tremendous respect for and confidence in this team’s ability to accelerate growth across all business divisions.”
“We are looking forward to working with the Freedom team in building a world-class financial services company,” said Teller, president of Maxim Group. “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.”
“I am extremely proud of the success Maxim Group has achieved over its twenty-year history. Speaking for our senior management and all of our dedicated employees, we look forward to starting our next chapter and working with an exceptionally strong and talented partner in Freedom,” said Michael Rabinowitz, chairman of Maxim.
Completion of the merger is subject to certain conditions and regulatory approvals.
Freedom is a financial services holding company conducting retail financial securities brokerage, investment research, investment counseling, securities trading, investment banking and underwriting services, mortgages, insurance, and consumer banking through its subsidiaries under the name of Freedom Finance in Europe and Central Asia. Through its subsidiaries, Freedom employs more than 2,900 people and is a professional participant in the Kazakhstan Stock Exchange, the Astana International Exchange, the Ukrainian Exchange, the Republican Stock Exchange of Tashkent, and the Uzbek Republican Currency Exchange and is a member of the NYSE and the Nasdaq.
Freedom is headquartered in Almaty, Kazakhstan, and has a presence in 14 countries, including Cyprus, the United States, Uzbekistan, the United Kingdom, and Germany.
Maxim is a full-service investment banking firm headquartered in New York with approximately 240 employees. Maxim Group provides financial services including investment banking; private wealth management; and global institutional equity, fixed-income, and derivatives sales and trading, as well as equity research. The investment banking group focuses on middle market and emerging growth companies within the shipping, energy, health care, technology, retail, and business and financial services sectors. Maxim’s institutional coverage spans North and South America, Europe, and Asia. Maxim is registered as a broker-dealer with the SEC and is a member of: Financial Industry Regulatory Authority (FINRA); Municipal Securities Rulemaking Board (MSRB); Securities Insurance Protection Corporation (SIPC); the Nasdaq and the NYSE Arca.