Piper Jaffray Buys Seattle-Northwest Securities

Investment banker Piper Jaffray expanded its municipal debt business Wednesday, when it purchased Seattle-Northwest Securities in a transaction valued at approximately $21 million.

Calling Seattle-Northwest "an established leader in underwriting municipal securities," and one with a "nationwide" municipal bond sales and trading business, Piper CEO Andrew Duff said his firm is taking "a significant step forward in developing a national franchise for our business."

Investors may disagree. Piper shares traded down 0.9% on Wednesday, closing at $32.32 ahead of the buyout news. They haven't yet had a chance to react to the news that Piper is paying 1.6 times tangible book value for Seattle-Northwest, versus Piper Jaffray's own P/TBV ratio of 1.0.

The article Piper Jaffray Buys Seattle-Northwest Securities originally appeared on Fool.com.

Fool contributor Rich Smith and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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