Investec USA Holdings Enters Into Merger Agreement With PMG Group

Acquisition Will Expand Investec's Investment Banking Services and Research

Capabilities in the US, While Building Core Business Lines



Apr 10, 2001, 01:00 ET from Investec USA Holdings

    NEW YORK and WEST CONSHOHOCKEN, Pa., April 10 /PRNewswire/ -- Investec USA
 Holdings and PMG Group announced today that they entered into a definitive
 merger agreement.  Upon closing of the merger, which is subject to regulatory
 approval and other customary closing conditions, PMG will become a
 wholly-owned subsidiary of Investec USA Holdings.
     Investec USA Holdings is part of the Investec Group
 (Johannesburg Stock Exchange: INT) and the parent corporation of Investec
 Ernst & Company.  PMG Group, Inc. is the parent company of PMG Capital, a
 registered broker/dealer that specializes in corporate finance, asset
 management, institutional research and sales.  This acquisition is part of
 Investec's ongoing strategy of building well-defined, value added businesses
 within the Group's core areas of activity.
     "Investment banking is an important element of Investec's international
 business and we've been looking for the right fit for nearly two years," said
 S. Derek Solomon, Chief Executive Officer of Investec USA Holdings.  "We
 believe we found the perfect partnership in PMG.  We believe PMG's focus on
 young and growing technology, telecommunications and healthcare companies,
 their robust professional platform and cohesive culture will serve as an ideal
 launching pad for our US investment banking activities and will catalyze our
 existing US businesses and our broad international practice."
     PMG's investment bankers specialize in serving emerging growth and middle
 market companies around the world.  The company has experience in a full range
 of investment banking activities, including initial public offerings, private
 placements, and mergers & acquisitions.  The company is known for its in-depth
 research in the areas of technology, telecommunications, and healthcare.
     "When I first visited Investec in London several months ago," said Richard
 A. Hansen, President of PMG Capital, "I felt like I was in our US offices --
 just with different accents."  Mr. Hansen added, "I am excited by the
 opportunity to blend the depth of Investment Banking expertise that we've
 built in the US over the last 14 years with the energy and resources of a
 young and dynamic international financial institution.  The collective
 capacity resulting from this combination will bring exceptional investment
 banking service to our global client base."
     The acquisition, which the parties hope to close as soon as they receive
 regulatory approval, will add more than 100 employees to Investec's US
 operations.
     In the United States, Investec USA Holdings through its wholly-owned
 subsidiary Investec Ernst & Company provides domestic and international
 securities clearance and settlement, listed and OTC execution services in
 securities and options, asset management, investment banking services, retail
 research, mutual fund and unit trust advisory services.  Investec Ernst &
 Company's Private Client Group through its nearly 400 registered
 representatives offers a wide range of financial services to retail,
 institutional, and professional clients around the world.  The company is a
 major distributor in the United States of South African and Israeli
 securities.
 
     Investec USA Holdings is part of the Investec Group, an international,
 specialist banking group which provides a wide range of specialized products
 and services to a select client base in 15 countries world-wide.  The Group is
 organized into four principal businesses, namely investment banking, treasury
 and finance activities, private client activities and asset management.
 Investec Group Limited is one of the 20 largest companies listed on the
 Johannesburg Stock Exchange and ranks among the world's top 400 banks with
 total assets under management as of 30 September 2000 exceeding $69 billion
 (including on-balance sheet assets of $25 billion).
 
 

SOURCE Investec USA Holdings
    NEW YORK and WEST CONSHOHOCKEN, Pa., April 10 /PRNewswire/ -- Investec USA
 Holdings and PMG Group announced today that they entered into a definitive
 merger agreement.  Upon closing of the merger, which is subject to regulatory
 approval and other customary closing conditions, PMG will become a
 wholly-owned subsidiary of Investec USA Holdings.
     Investec USA Holdings is part of the Investec Group
 (Johannesburg Stock Exchange: INT) and the parent corporation of Investec
 Ernst & Company.  PMG Group, Inc. is the parent company of PMG Capital, a
 registered broker/dealer that specializes in corporate finance, asset
 management, institutional research and sales.  This acquisition is part of
 Investec's ongoing strategy of building well-defined, value added businesses
 within the Group's core areas of activity.
     "Investment banking is an important element of Investec's international
 business and we've been looking for the right fit for nearly two years," said
 S. Derek Solomon, Chief Executive Officer of Investec USA Holdings.  "We
 believe we found the perfect partnership in PMG.  We believe PMG's focus on
 young and growing technology, telecommunications and healthcare companies,
 their robust professional platform and cohesive culture will serve as an ideal
 launching pad for our US investment banking activities and will catalyze our
 existing US businesses and our broad international practice."
     PMG's investment bankers specialize in serving emerging growth and middle
 market companies around the world.  The company has experience in a full range
 of investment banking activities, including initial public offerings, private
 placements, and mergers & acquisitions.  The company is known for its in-depth
 research in the areas of technology, telecommunications, and healthcare.
     "When I first visited Investec in London several months ago," said Richard
 A. Hansen, President of PMG Capital, "I felt like I was in our US offices --
 just with different accents."  Mr. Hansen added, "I am excited by the
 opportunity to blend the depth of Investment Banking expertise that we've
 built in the US over the last 14 years with the energy and resources of a
 young and dynamic international financial institution.  The collective
 capacity resulting from this combination will bring exceptional investment
 banking service to our global client base."
     The acquisition, which the parties hope to close as soon as they receive
 regulatory approval, will add more than 100 employees to Investec's US
 operations.
     In the United States, Investec USA Holdings through its wholly-owned
 subsidiary Investec Ernst & Company provides domestic and international
 securities clearance and settlement, listed and OTC execution services in
 securities and options, asset management, investment banking services, retail
 research, mutual fund and unit trust advisory services.  Investec Ernst &
 Company's Private Client Group through its nearly 400 registered
 representatives offers a wide range of financial services to retail,
 institutional, and professional clients around the world.  The company is a
 major distributor in the United States of South African and Israeli
 securities.
 
     Investec USA Holdings is part of the Investec Group, an international,
 specialist banking group which provides a wide range of specialized products
 and services to a select client base in 15 countries world-wide.  The Group is
 organized into four principal businesses, namely investment banking, treasury
 and finance activities, private client activities and asset management.
 Investec Group Limited is one of the 20 largest companies listed on the
 Johannesburg Stock Exchange and ranks among the world's top 400 banks with
 total assets under management as of 30 September 2000 exceeding $69 billion
 (including on-balance sheet assets of $25 billion).
 
 SOURCE  Investec USA Holdings