As part of its strategy to strengthen investment banking
business, Lazard Australia - the Australian division of
) - announced the acquisition of Sydney-based independent corporate
advisory firm - O'Sullivan Partners. The financial terms of the
deal were undisclosed.
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Lazard is one of the world's largest advisory and asset management
firms with US$148 billion assets under management as of June 30,
2012. The company expects the deal to reinforce its presence in
John Wylie, the chief executive of Lazard Australia, stated that
the company has positive growth prospects from the Australian unit
and the deal with O'Sullivan will strengthen the business in
With O'Sullivan's experience of acting as advisory to transactions
that involved Ten Network Holdings, the deal will help Lazard get a
larger team for their Sydney unit with varied expertise, primarily
in the media sector. Also, it will help Lazard build a steady
relationship with private equity firm,
Kohlberg Kravis Roberts & Co.
), after O'Sullivan acted as the advisory to three of its deals in
the past five years.
Tony O'Sullivan, the founder and managing partner of O'Sullivan
Partners, will head Lazard's Sydney investment banking team whereas
Garren Cronin, Partner of O'Sullivan partners, will become one of
the Managing Directors of Lazard.
Established in 2005, O'Sullivan has created an outstanding record
in the Australian Mergers & Acquisitions (M&A) market over
the last seven years, advising clients on M&A transactions and
debt and equity capital market deals across a variety of sectors.
Advisory firms have been suffering due to the mergers and
acquisitions environment around the globe. However, Lazard's
M&A and strategic advisory fees grew 15% in the second quarter
of 2012. We expect the aforementioned deal to help Lazard further
improve its M&A and strategic advisory fees.
Lazard currently retains a Zacks #3 Rank, which translates into a
short-term Hold rating.