UPDATE 3-U.S.Greenhill to buy Caliburn for $91 mln in stock
* Deal pays 1.1 mln in shares plus same in milestone payments
* Six Caliburn managing directors to join Greenhill (Adds milestone payment details)
March 16 (Reuters) - Boutique investment bank Greenhill & Co Inc (GHL.N) said it will buy Australia-based financial advisory firm Caliburn Partnership Pty Ltd for $91 million in stock plus milestone payments.
Greenhill will issue Caliburn 1,099,875 shares plus a new convertible preferred stock that pays no dividend and will convert into the same number of shares of Greenhill common stock over five years if certain revenue levels are achieved.
The preferred stock would be cancelled if Caliburn does not achieve an average revenue of A$50 million a year in the first three years and a similar amount in the next two years, it said. Its revenue averaged A$76.6 million over the past three years.
"Caliburn significantly expands our capabilities in energy, mining, financial services, consumer and many other important sectors," said Scott Bok, co-chief executive of Greenhill.
All six managing directors and 40 staff of Caliburn will join Greenhill when the deal is closed, the company said in a statement. It is expected to close in early April.
Caliburn will operate in Australia and New Zealand under the name Greenhill Caliburn once the deal is completed.
Greenhill was founded in 1996 by former Smith Barney chief executive Robert Greenhill. Its shares closed at $82.42 on the New York Stock Exchange on Tuesday. (Reporting by Sweta Singh in BANGALORE; Additional reporting by Narayanan Somasundaram in SYDNEY; Editing by Jarshad Kakkrakandy and Valerie Lee) ((email@example.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: firstname.lastname@example.org))