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BankAmerica buys firm
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June 9, 1997: 11:04 a.m. ET
Cash deal for Robertson Stephens & Co. is worth up to $540 million
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NEW YORK (CNNfn) -BankAmerica Corp. said Monday it will acquire San Francisco-based investment banking and investment management firm Robertson Stephens & Co. Group LLC in a cash transaction valued at up to $540 million.
BankAmerica said the deal is designed to keep more than 60 key Robertson Stephens executives, basically the core of the investment operation, with the company for at least three to four years after it becomes part of BankAmerica.
An initial payment of $245 million will be paid to the Robertson Stephens managing directors. Another $225 million will be paid over the next three years to those managing directors that stay with the company. The remaining $70 million will be used as a retention pool to keep key employees and managing directors on at the company over a four year period.
"Robertson Stephens is an excellent strategic fit for us," David A. Coulter, BankAmerica's chairman and chief executive officer, said. "It's a strong performer with an excellent reputation. We expect, with this addition, to build a platform from which to offer our clients a broader range of equity underwriting and other investment banking and investment management services than we are currently able to provide."
Under the terms of the deal, Sanford R. Roberston, chairman of Roberston Stephens will be asked to join the BankAmerica Board of Directors. Other key senior managers in the privately owned investment firm will continue in their current positions.
"BankAmerica provides us with the means to accelerate our growth as a global investment banking and investment management business," Mike McCaffery, president and chief executive officer of Robertson Stephens added. "We believe the fit between our organizations is outstanding and we share a common vision of the future in financial services."
The transaction, which is subject to regulatory approvals, is expected to be completed in the fourth quarter of this year. 
From staff and wire reports
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