D.A. Davidson, a broker-dealer catering to commercial banks, thrifts and insurance companies, is expanding its focus on taxable fixed income. The company, which has been biased toward public finance, is planning to ramp up its taxable assets with the acquisition of Kirkpatrick Pettis, a broker-dealer subsidiary of Mutual of Omaha. Davidson is based in Great Falls, Mont.
The pending acquisition of KP will add 90 employees, including a 20-strong sales force, seven traders and 25 municipal bankers to Davidson's 35-person fixed income group. The team will ultimately consist of 125 to 130 professionals, according to Kreg Jones, senior v.p. and managing director of Davidson's fixed income capital markets division. Jones will co-head the new division with Sam Doyle, currently executive v.p. of fixed income capital markets/public finance for KP. Last year, KP brought in $30 million in revenues, while Davidson's fixed income group brought in $16 million in revenue.
The increase in the sales force will help the firm better target its markets, including the agency sector, according to Jones. The new division may also grow its coverage of banks and expand its trading in mortgage-backed securities, Jones said.
The acquisition, which is for an undisclosed price, is expected to close Dec. 31.
