Evercore Partners to Acquire Lexicon Partners

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Evercore Partners Inc. (NYSE: EVR) has announced that it has entered into an agreement to acquire Lexicon Partners, a leading independent UK-based investment banking advisory firm.

Under the terms of the purchase agreement, Evercore will pay approximately £86m in cash and Evercore shares. The transaction is expected to close in the third quarter of 2011, upon receipt of required regulatory approvals.

Established in 2000, Lexicon Partners provides strategic investment banking advisory services to large and midsize corporations, principally in the financial services, utilities and infrastructure, and energy sectors. The firm has advised on approximately 250 completed transactions with a combined value in excess of £100 billion. Lexicon currently has 100 partners and employees operating from offices in London, Hong Kong, New York and Aberdeen. Evercore and Lexicon plan to merge their operations upon closing. Andrew Sibbald, the Senior Partner of Lexicon, will serve as CEO of Evercore's European Advisory business and Bernard Taylor, currently Evercore's Chairman and CEO in Europe, will continue as the Chairman of the European business.

The acquisition and merger of the Evercore and Lexicon investment banking businesses will provide:

Critical Mass in Europe 

On a combined basis, Evercore's European investment banking business will have approximately 75 bankers, including 13 senior managing directors, expanding significantly the size of our European team;

A Platform for Future European Growth

The combined business will provide a broader platform from which to expand Evercore's capabilities in Continental Europe where it already has had considerable success;

Expanded Global Industry Coverage 

The addition of Lexicon's financial institutions, utilities and infrastructure and energy expertise will strengthen Evercore's global coverage in these sectors, enhancing the breadth and depth of its sector expertise in Europe; and

Enhanced Value for Shareholders 

The merger is expected to be immediately accretive to earnings per share and Evercore believes the combination will provide a strong base to create value for Evercore shareholders via the continuing buildout of its European operations.

Ralph Schlosstein, Evercore's President and Chief Executive Officer, said, 'Since I joined Evercore two years ago, adding to our capabilities in Europe has been a very high strategic priority. This transaction materially expands our ability to serve our global clients, significantly strengthens our presence in Europe and expands our industry capabilities in three key sectors. Lexicon has built a team of exceptional professionals led by seasoned partners and senior advisors. We welcome the entire Lexicon team to the Evercore partnership', Mr. Schlosstein added, 'Consistent with our commitment to financial discipline, the transaction is expected to be immediately accretive to earnings'.

'We are greatly looking forward to joining the Evercore team', said Andrew Sibbald, Lexicon's Senior Partner. 'Like us, Evercore has built its reputation on providing clients with high quality, specialist and independent advice. This combination will provide significant benefits to our clients through access to greater resources, wider geographic coverage and broader industry expertise. We see this as a very exciting strategic leap forward'.

'Evercore and Lexicon share core values of excellence and integrity, and there are significant cultural similarities between our two firms," said Bernard Taylor, Evercore's European Chairman. "This combination significantly expands and enhances our capabilities in the region and we look forward to working closely with our new colleagues and continuing to build the European franchise'.

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