SoundView Technology Group
Encyclopedia
Soundview Technology Group (formerly NASDAQ:SNDV) was an American technology-focused securities and investment banking firm known primarily for its equity research on technology and other growth oriented companies. The company was acquired by Charles Schwab
in 2003.
Soundview was unique in that it combined accepted Wall Street research and distribution methods, with the intimate (albeit "arms length") relationship with Gartner analysts, and arguably became the leading technology research boutique on Wall Street.
SoundView was based in Old Greenwich, Connecticut.
initiated a financial service for Gartner Group via a partnership with Dillon, Read & Co.
, which distributed its reports and personal services
to Dillon, Read & Co.
investment client organizations. Gartner Group severed the Dillon Read relationship and became an independent broker-dealer
in 1984, Gartner Securities Corp.
Gartner Securities was spun off to its shareholders just before its first public offering in 1986, providing analysis, investment advice and investment banking services, to institutional investors. The firm changed its name in 1988 to Soundview Technology, when Gartner was acquired by Saatchi & Saatchi
.
in early 2000, SoundView merged with Wit Capital (formerly Nasdaq:WITC) to form Wit SoundView in a $320 million all-stock transaction. Wit Capital had been founded just a few years earlier, in 1996, by Andrew Klein. Wit positioned itself as an online investment banking firm focused exclusively on the Internet and technology sectors. Wit had pioneered several bubble-era innovations in investment banking including a "first-come, first-serve" approach to public offerings. Wit had been backed by Goldman Sachs
, which sold its stake in 2001.
announced the acquisition of SoundView for $15.50 per share, or approximately $345 million. The acquisition was intended to integrate SoundView's equity research content with Charles Schwab's trading execution capabilities. SoundView received a 57% premium to its market price before the announcement.
Charles Schwab
Charles Schwab may refer to:*Charles M. Schwab , American steel magnate*Charles R. Schwab , founder of the eponymous brokerage*Charles Schwab Corp., an American based brokerage firm...
in 2003.
Soundview was unique in that it combined accepted Wall Street research and distribution methods, with the intimate (albeit "arms length") relationship with Gartner analysts, and arguably became the leading technology research boutique on Wall Street.
SoundView was based in Old Greenwich, Connecticut.
History
In 1977, Gideon GartnerGideon Gartner
Gideon I. Gartner is an entrepreneur and philanthropist, best known as the founder of Gartner, an information technology research and advisory company.- Early life :Gartner was born in Israel and grew up in New York City...
initiated a financial service for Gartner Group via a partnership with Dillon, Read & Co.
Dillon, Read & Co.
Dillon, Read & Co. was a prominent American investment bank from the 1920s into the 1960s.-Origins:Dillon Read traces its roots to 1832 with the founding of the Wall Street brokerage firm Carpenter & Vermilye. This firm was succeeded by Read & Company in which chief principal was William A. Read. ...
, which distributed its reports and personal services
Personal Services
Personal Services is a 1987 British comedy film directed by Terry Jones and written by David Leland. It is the story of the rise of a madam of a suburban brothel which caters to older men. The story is inspired by the real experiences of Cynthia Payne, the legendary "House of Cyn" madam. The film...
to Dillon, Read & Co.
Dillon, Read & Co.
Dillon, Read & Co. was a prominent American investment bank from the 1920s into the 1960s.-Origins:Dillon Read traces its roots to 1832 with the founding of the Wall Street brokerage firm Carpenter & Vermilye. This firm was succeeded by Read & Company in which chief principal was William A. Read. ...
investment client organizations. Gartner Group severed the Dillon Read relationship and became an independent broker-dealer
Broker-dealer
A broker-dealer is a term used in United States financial services regulations. It is a natural person, a company or other organization that trades securities for its own account or on behalf of its customers....
in 1984, Gartner Securities Corp.
Gartner Securities was spun off to its shareholders just before its first public offering in 1986, providing analysis, investment advice and investment banking services, to institutional investors. The firm changed its name in 1988 to Soundview Technology, when Gartner was acquired by Saatchi & Saatchi
Saatchi & Saatchi
Saatchi & Saatchi is a global advertising agency network with 140 offices in 80 countries and over 6,500 staff. It was founded in London in 1970 but now headquartered in New York. The parent company of the agency group was known as Saatchi & Saatchi PLC from 1976 to 1994, was listed on the London...
.
Merger with Wit Capital
At the peak of the dot-com bubbleDot-com bubble
The dot-com bubble was a speculative bubble covering roughly 1995–2000 during which stock markets in industrialized nations saw their equity value rise rapidly from growth in the more...
in early 2000, SoundView merged with Wit Capital (formerly Nasdaq:WITC) to form Wit SoundView in a $320 million all-stock transaction. Wit Capital had been founded just a few years earlier, in 1996, by Andrew Klein. Wit positioned itself as an online investment banking firm focused exclusively on the Internet and technology sectors. Wit had pioneered several bubble-era innovations in investment banking including a "first-come, first-serve" approach to public offerings. Wit had been backed by Goldman Sachs
Goldman Sachs
The Goldman Sachs Group, Inc. is an American multinational bulge bracket investment banking and securities firm that engages in global investment banking, securities, investment management, and other financial services primarily with institutional clients...
, which sold its stake in 2001.
Sale to Charles Schwab
On November 19, 2003, Charles SchwabCharles Schwab
Charles Schwab may refer to:*Charles M. Schwab , American steel magnate*Charles R. Schwab , founder of the eponymous brokerage*Charles Schwab Corp., an American based brokerage firm...
announced the acquisition of SoundView for $15.50 per share, or approximately $345 million. The acquisition was intended to integrate SoundView's equity research content with Charles Schwab's trading execution capabilities. SoundView received a 57% premium to its market price before the announcement.