Enterprise Financial Services has purchased the remaining 40% minority interest in Millennium Brokerage Group.
Enterprise had acquired 60% of Millennium Brokerage Group (MBG) for $15 million in October, 2005, with the acquisition of the remaining interest originally scheduled to occur in two stages in 2008 and 2010.
Under the terms of the restructured acquisition agreement, Enterprise acquired the remaining interest in MBG for $1.5 million plus subsequent annual payments of up to $2 million each year for four years contingent upon achievement by MBG of certain pre-tax earnings targets. As part of the new agreement, MBG partners will now earn a sliding scale percentage of net revenues produced annually by their respective offices.
Kevin Eichner, CEO of Enterprise Financial, said: To accommodate a change in the Millennium partner compensation plan and equity incentives and to recognize the effects of the decline in Millennium’s margins on valuing the remaining ownership interests pursuant to the original buyout terms.
Bill Zelenik, president and CEO of MBG, commented: Our new agreement enables us to more effectively recognize the distinctive sales contributions of key individuals and continue to provide a fair return to EFSC shareholders. I’m very pleased that our teams at MBG and Enterprise, working in partnership, were able to arrive at this new arrangement.