U.S. Bancorp (NYSE:USB) agreed to acquire financial services firm BTIG in a deal valued at as much as $1 billion, a strategic move by the fifth-largest U.S. bank to aggressively expand its footprint in investment banking and institutional trading.
The Minneapolis-based lender will pay an initial $725 million—comprising $362.5 million in cash and approximately 6.6 million shares of common stock—when the transaction closes, expected in the second quarter of 2026.
An additional $275 million in cash is available over the next three years, contingent on BTIG meeting specific performance targets.
The acquisition marks the culmination of a decade-long partnership between the two firms.
Since 2014, BTIG has served as U.S. Bancorp’s primary referral partner for equity capital markets, and the firms launched a joint M&A advisory program in 2023.
By bringing BTIG’s 700 employees and 20 global offices in-house, U.S. Bancorp aims to fill critical product gaps in its institutional suite, specifically in high-touch equity trading and prime brokerage.
“BTIG’s top talent and technology will position us for continued capital markets growth and deeper client relationships,” U.S. Bancorp CEO Gunjan Kedia said in a statement Tuesday.
The move is designed to leverage U.S. Bancorp’s massive corporate reach; the bank currently serves nearly 90% of the Fortune 1000.
U.S. Bancorp’s capital markets division has been a rare bright spot for the bank, generating $1.4 billion in revenue in the 12 months through September 2025 and maintaining a 21% compound annual growth rate since 2021.
The deal is expected to be neutral to 2026 earnings per share while slightly reducing the bank’s Common Equity Tier 1 capital ratio by 12 basis points.
BTIG CEO Anton LeRoy will continue to lead the unit, reporting to Stephen Philipson, U.S. Bancorp’s head of wealth, corporate, commercial, and institutional banking.
BTIG co-founder Steven Starker will also remain in his day-to-day role focusing on client engagement and business development.