The acquisition of Hudson is expected to bring substantial diversification to Rodman’s business platform through Hudson’s sales and trading franchise. Hudson currently makes markets in over 12,000 stocks, serving as a liquidity provider to over 400 institutions, hedge funds, and asset managers, complementing its 200 broker-dealer clients. In addition to being a top market maker in small cap stocks, Hudson’s product offering includes global execution capabilities in over 30 markets around the world, a full-service equity derivatives desk, expertise in trading distressed equities, commission management and client DMA (direct market access). The acquisition of Hudson will also enhance Rodman’s premier research franchise, expanding coverage to key sectors including transportation, gaming, leisure, wireless technology and industrials. On a combined basis Rodman will provide coverage on over 280 companies.
Headquartered in New York City, on a combined basis Rodman will also have offices in Jersey City, NJ, Norwalk, CT, Boston, MA, Chicago, IL, Cleveland, OH, Houston, TX, Boca Raton, FL and Tinton Falls, NJ.
Substantial operating cost savings and efficiencies are expected to be achieved following a transition and integration period. As a result, Rodman expects the transaction to be neutral to earnings by the fourth quarter of 2011 and accretive in 2012.
Rodman will also benefit as a result of senior executives of Hudson joining Rodman. Upon the completion of the transaction, Anthony Sanfilippo, currently Hudson’s chief executive officer, will become president of Rodman and a member of its board of directors. In addition, Ajay Sareen, currently Hudson’s chief administrative officer, will become Rodman’s chief operating officer. Each will report to Edward Rubin, Rodman’s chief executive officer.Edward Rubin, Rodman’s chief executive officer commented, “The strategic acquisition of Hudson expands Rodman’s product and service offerings, substantially enhances our business platform and diversifies our revenue base. This has been a primary goal of Rodman and is consistent with the other initiatives we have completed over the past several years. The acquisition will combine Rodman’s leadership in the PIPE and Registered Direct transaction market and strong capabilities in underwritten transactions with Hudson’s substantial presence in sales and trading in growth equities. We expect to leverage the acquisition by expanding the combined platform’s market making and trading capabilities and to enhance our client service ability by hiring seasoned sales and trading professionals so that we can broaden our current product distribution and expand into new markets. I am also extremely excited that Tony Sanfilippo and Ajay Sareen will be joining our executive leadership team and I look forward to welcoming their Hudson colleagues to the Rodman family. Tony and Ajay have over 50 years of combined experience in building sales and trading platforms including at Knight and Jefferies.”