Piper Sandler Cos. is growing its technology sector coverage with its second announced acquisition of 2022.
The company announced an agreement on July 6 to acquire Burlingame, Calif.-based DBO Partners LLC, an independent technology investment bank that focuses on sub-sectors including software, security, engineering, semiconductors and infrastructure.
"Continuing to grow our tech franchise is a top priority for us and this obviously is an important step towards that goal," said Michael Dillahunt, global co-head of investment banking and capital markets at Piper Sandler, in an interview with S&P Global. "The market opportunity in an increasingly tech-centric economy is enormous and the combination with DBO just scales our tech practice and allows us to capitalize on that."
In a July 6 report, Keefe Bruyette & Woods analyst Michael Brown echoed Dillahunt, saying "DBO should bolster [Piper Sandler]'s tech platform and position the firm well to meet clients' needs to position for an increasingly tech-centric economy."
Dillahunt rendered Piper Sandler's DBO acquisition complementary to both companies, noting that Piper Sandler will be able to provide DBO's clients with access to its equity and capital markets capabilities.
Conversely, DBO, with its track record of working with leading financial sponsor clients, "enhances our large cap credentials and enhances our brand with both corporate and financial sponsors in the large cap world," Dillahunt said. DBO will also provide Piper Sandler with general partner advisory services and joins the company with a reputation in the industry as "great strategic advisers," Dillahunt said.
The two companies have known each other for at least eight years, and natural connections have formed between the two companies during that time, Dillahunt added.
Gordon Dean, Mark Bradley and Nick Osborne, the three co-founders of DBO Partners, will be integrated into Piper Sandler's technology team, along with "four additional really talented younger partners" including Brian White, who will be leading Piper Sandler's security and defense coverage. Overall, the DBO team consists of 23 professionals.
It remains to be seen whether the DBO acquisition will be Piper Sandler's last in 2022.
Dillahunt said Piper Sandler would remain open to future acquisitions but did not mention any specific sectors the company would target. Piper Sandler has been somewhat active recently, in the first quarter announcing its acquisition of Stamford Partners LLP and completing its acquisition of Cornerstone Macro LLC.
"I think we've done a nice job of finding partners, not sellers, that can help us grow our business. DBO is a great example of that," Dillahunt said.
