Freedom Holding Corp., a Kazakhstan-based brokerage run by billionaire Timur Turlov, has agreed to buy US financial services firm Maxim Group.
(Bloomberg) — Freedom Holding Corp., a Kazakhstan-based brokerage run by billionaire Timur Turlov, has agreed to buy US financial services firm Maxim Group.
The cash-and-stock deal is worth about $400 million, including deferred payments and retention bonuses, according to a statement Thursday, confirming a Bloomberg News report.
The deal for Maxim follows Freedom Holding’s sale of its Russian operations for $33 million following last year’s invasion of Ukraine. Turlov, who gave up his Russian citizenship, controls more than 70% of Freedom Holding’s outstanding shares, according to data compiled by Bloomberg.
“We are committed to growing our global footprint, and we recognize that having a significant US presence is an important part of this strategy,” Turlov said in a statement.
Formed in 2002 as a spinoff from the investment firm Investec, Maxim Group provides investment banking, equity research, prime brokerage and other financial services, according to its website. It’s carved out a niche working on small and midsize mergers and initial public offerings, including listings from Mars Acquisition Corp. and Innovative Eyewear Inc.
Maxim’s corporate and institutional reach into Asia, Greece, Israel and Western Europe complements Freedom’s brokerage and global distribution network, according to the statement.
“We look forward to building on Maxim’s history of success and consistent profitability in varying market conditions,” said Robert Wotczak, chief executive officer of Freedom’s US operations, who will become executive chairman of Maxim Group. Clifford Teller, Maxim Group’s president, will become CEO.
Maxim Group’s IPO also coverage overlaps with Freedom Holding, which became popular in its home market by giving local investors access to hot US IPOs for companies including AirBNB Inc. and Bumble Inc.
Freedom Holding rose 0.6% to close at $63.76 in New York trading on Wednesday, giving the company a market value of about $3.8 billion.
(Updates with details from statement starting in first paragraph)
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.