Piper Jaffray Cos, a US-based investment banking and securities firm, will acquire Advisory Research in a $218 million deal to expand its asset management business, PJC said yesterday.

Chicago, Illinois-based Advisory Research has $5.5 billion in assets under management, Piper Jaffray Cos said in a statement.

Piper Jaffray will pay $178 million in cash and $40 million in restricted stock. The deal is expected to be completed in the first three months of 2010.

Assuming the transaction occurred on 30 September, asset management would have comprised approximately 12 per cent of Piper Jaffray total net revenues and 24 per cent of pre-tax operating income for the nine months ending on 30 September, the statement said.

Employee owners will receive approximately 40 percent of consideration in restricted stock.

Brien O'Brien, chief executive officer of Advisory Research, will join the Piper Jaffray senior leadership team and report to Andrew Duff, chairman and CEO of Piper Jaffray. O'Brien will continue to lead Advisory Research and Wiley Angell, CEO of FAMCO, the current Piper Jaffray asset management business, will continue to lead that organization.