Quarterdeck bought by Jefferies Group

Long time government mergers and acquisition adviser Quarterdeck Investment Partners LLC has been acquired by Jefferies Group Inc., an investment banking firm.

Terms of the cash and stock deal were not disclosed.

The two firms formed a strategic alliance in March 2001, when Jefferies of New York purchased a minority stake in Los Angeles-based Quarterdeck. In April 2002, Jefferies and Quarterdeck expanded the relationship by forming a joint venture.

"It's sort of like dating, then living together and then getting married," said Jon Kutler, Quarterdeck's founder, chairman and chief executive.

Kutler will remain with the company, which will continue to operate under the Quarterdeck name. The firm's merger and acquisition clients should notice little difference, other than Quarterdeck having access to more resources, he said.

"Our combined efforts with Quarterdeck proved so successful in 2001 and 2002, it made perfect sense to expand our relationship with them," said John Shaw Jr., president of Jefferies. "This union combines the strength of Jefferies' investment banking, trading and research capabilities with the industry knowledge and expertise of the Quarterdeck team."

Jefferies is picking up all of Quarterdeck's 26 employees and offices in Los Angeles, Washington and London. Quarterdeck's focus will remain in the aerospace, defense and federal information technology markets, Kutler said.

Recent deals involving Quarterdeck include Matcom International Corp.'s acquisition of Entek Inc.; two acquisitions involving L-3 Communications Inc. and Northrop Grumman Corp. and L-3's purchase of Wescam Inc.

Quarterdeck also was named the 2002 Boutique Middle-Market M&A Firm of the Year by The Mergers and Acquisitions Advisor.