SEOUL, South Korea, May 3, 2011 /PRNewswire/ -- Tong Yang Securities Inc. ("Tong Yang", 003470:KS) announced today that it has entered into a definitive merger agreement to acquire Esae Capital Partners, LLC ("Esae Capital"), a New York-based boutique merchant bank focused on M&A and capital raising activities. Through this transaction, Tong Yang will expand its global investment banking and capital markets presence into the United States.
The acquisition reflects Tong Yang's growth strategy as the firm expands its global footprint into new geographies to leverage its domestic investment banking, research, sales and trading capabilities. Esae Capital provides Tong Yang with an immediate US investment banking expertise and a leading presence in the Emerging Domestic Market ("EDM") sector – EDM is the niche and growing market of minority owned and/or operated firms.
"We are excited to have the Esae Capital team join Tong Yang and believe that it positions us well to expand our presence in the US," said Yoo Joon Ryeol, CEO of Tong Yang Securities. "We believe this is a unique strategy to build our global brand. Additionally, Esae Capital targets an underserved market in the US – the EDM segment – which has tremendous potential but has been overlooked by traditional financial services institutions."
Esae Capital was founded in 2008 as a boutique, middle-market investment bank to provide firms with strategic advisory and capital raising services, including M&A, strategic alternatives review, private placements and recapitalization assistance.
"Given our clients increasing business ties to, and interest in, cross-border opportunities, the partnership with Tong Yang is an excellent strategic fit," noted Esae Capital's founder and Managing Partner, Jim Yang. "Tong Yang provides a global network and resources that we can now expand into the US. And, Esae Capital will be able to leverage Tong Yang's breadth of securities businesses and deep client relationships to support clients in the US."
Under the agreement, Esae Capital will operate as a subsidiary of Tong Yang under existing management. As part of the transaction, Esae Capital's Managing Partner, Jim Yang, will assume additional responsibilities in Tong Yang's Global Investment Banking Division. The transaction is expected to close in May and is subject to US and Korean regulatory approvals.
About Tong Yang Securities Inc.
Tong Yang Securities Inc. is a South Korea-based financial services firm that was founded in 1962 and is publicly traded on the Korean Stock Exchange. Tong Yang provides a wide array of financial services including mergers and acquisitions, financing, sales and trading, retail banking and research. The company has 165 South Korean-based branches and operations in New York, Tokyo, Hong Kong, Manila, Ho Chi Minh and Phnom Penh. With over 3,100 employees, Tong Yang has total assets of over US$14 billion and revenues of approximately US$2 billion as of 2010.
About Esae Capital Partners, LLC
Esae Capital Partners is a New York-based merchant bank founded in 2008 to provide strategic and financial advisory services to small and medium-sized companies. The firm targets a niche industry, the Emerging Domestic Market, ethnically owned and/or operated businesses, which represent the fastest growing segment of the US economy. Esae Capital is a registered broker/dealer with the Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC).
SOURCE Esae Capital Partners