HS investor conferenceImperial Capital to acquire USBX

Published 30 November 2007

Imperial Capital has been expanding during the past two years, and now it adds considerable sector-specific depth by acquiring boutique investment firm USBX; USBX’s analysts bring with them considerable knowledge of four sectors: Security (both commercial and homeland), government IT and business services, technology, and consumer; USBX CEO John Mack to head M&A at Imperial Capital

In the coming two weeks we will be covering the Homeland Security Investor Conference (HSIC), which will be held in Washington, D.C. on 10-11 December. On Monday we will publish a detailed discussion of the event and its importance, and we will be on the conference floor to cover the panel discussions and presentations (for more information on the conference, and for registration, go to the HSIC Web site). One of the event organizers is Los Angeles-based USBX Advisory Services (USBX), a boutique investment banking firm focusing on mergers and acquisitions (M&A). Two weeks ago it was acquired by Imperial Capital Group, LLC and Imperial Capital, LLC, a full-service investment bank based in Los Angeles. Terms of the transaction were not disclosed. Consummation of the acquisition is subject to regulatory approval, which the companies anticipate receiving within thirty days.

Imperial Capital says that the proposed acquisition is part of its continued expansion efforts. During the past two years, Imperial Capital has added twenty-seven professionals to its investment banking department, and when the acquisition is completed, the firm will employ fifty-four investment bankers advising clients on financing, restructuring, and M&A transactions. The USBX team will be especially valuable to Imperial Capital by adding deep sector knowledge in specific vertical markets in which USBX has leading practice groups. “Imperial Capital has been pursuing an aggressive growth plan adding top investment banking professionals with the goal of increasing the services that we provide to our clients,” said Jason Reese, president of Imperial Capital. “The addition of the USBX team is the perfect complement to our existing professionals and will increase our M&A capabilities and expertise. John E. Mack III, the CEO and co-founder of USBX, will serve as the head of M&A at Imperial Capital following the consummation of the merger.”

Mack agreed. “The merger with Imperial Capital is an exciting opportunity for us to take our business to the next level as part of a stronger, more diversified platform that can offer a comprehensive set of products and services to our clients,” he said. “In turn, USBX brings to Imperial Capital our significant expertise and experience in M&A and the four vertical markets where we operate specialty practices: Security (both commercial and Homeland), Government IT and Business Services, Technology, and Consumer. It also allows a greater forum for our research division, which writes research on each of our targeted verticals based on first-hand investigation. We are very excited by the combination of complementary capabilities and skills and we look forward to bringing a more complete set of solutions to our clients going forward.”