Jan 13 (Reuters) - U.S. Bancorp said on Tuesday it would buy Wall Street brokerage BTIG for up to $1 billion in cash and stock, snapping up a partner to bolster its capital markets presence.
The deal will help the lender tap into BTIG's strengths in investment banking, institutional sales and trading, research and prime brokerage as it diversifies beyond its traditional banking services.
BTIG has been the bank's equity capital markets referral partner since 2014.
"BTIG's addition to U.S. Bancorp is
a strategic move to fill key product gaps for our corporate and institutional clients, enabling us to offer a more comprehensive suite of capital markets services," said Stephen Philipson, head of wealth, corporate, commercial and institutional banking at U.S. Bancorp.
Shares of the bank fell 1.3% to $53.69 in trading before the bell post the announcement.
U.S. Bancorp had said in October it had set up a unit focused on digital assets and money movement to speed up development and boost revenue from the emerging business.
Founded in 2005, BTIG operates across 20 cities in the U.S., Europe, Asia and Australia and has been part of over 1,275 announced investment banking transactions since 2015.
BTIG's leadership team will join U.S. Bancorp and continue to lead the business as part of the deal, which is expected to close in the second quarter of 2026.
The bank is scheduled to report its fourth-quarter earnings next week.
BTIG, Goldman Sachs, and Sheumack GMA were the advisors on the transaction.
(Reporting by Arasu Kannagi Basil and Pritam Biswas in Bengaluru; Editing by Shilpi Majumdar and Sriraj Kalluvila)
