US securities house Piper Jaffray is to buy Vie Securities, a broker-dealer provider of algorithmic, electronic execution services, for $15 million in cash.
Minneapolis-based Piper says the acquisition will enable it to help meet the increased demand of institutional clients for automated, cost-effective execution capabilities.
Andrew Duff, chairman and CEO of Piper Jaffray Companies, says: "We will continue to offer high quality, high touch trading execution and expect this new acquisition to be complementary, fulfilling the increasing client demand for value-added, algorithm-based trading services."
He says the electronic trading execution service will be operated independently from the traditional market-making activities in an effort to maintain client confidentiality.
The acquisition includes proprietary algorithms, direct market access systems, licensed trading technology, and approximately 25 employees based in New York, who will move to Piper Jaffray's New York office next year.
Vie Securities CEO Dean Stamos will continue to lead the business, reporting to Mark Donahoe, head of equity trading at Piper Jaffray. Vie clients will continue to receive service under the Vie name until the transaction closes.