Piper Jaffray Cos. and Sandler O'Neill + Partners said Tuesday they have agreed to merge in a deal with a value of $485 million. The combined company will be named Piper Sandler Cos. and will join the investment bank focused on financial services with Piper Jaffray's investment banking platform, the companies said in a joint statement. The deal "accelerates Piper Jaffray's goal of prioritizing and building its M&A advisory business, adds a differentiated fixed income business and significantly expands the breadth and depth of the firm's equity research, and sales and trading franchise," said the statement. The deal is expected to close in January of 2020. Piper Jaffray will pay $350 million in cash to Sandler shareholders at close and pay $135 million in restricted stock to Sandler employee partners, along with an additional $115 million in retention incentives. The new company will have 2018 pro forma combined advisory service revenue of $573 million and pro forma combined investment banking revenue of $839 million. It is expected to boost adjusted EPS by more than 10% in 2020. Sandler Senior Managing Principal Jimmy Dunne will be named vice chairman of Piper Sandler and senior managing principal of Piper Sandler's financial services business. Piper Jaffray shares were not yet active premarket, but have gained 12.2% in 2019, while the S&P 500 /zigman2/quotes/210599714/realtime SPX +1.99% has gained 18.7%.