Swiss banking giant UBS AG announced Tuesday that it will acquire the private client branch network of Piper Jaffray Companies for US$500 million in cash.

The transaction, which is expected to close at the beginning of the third quarter subject to regulatory approval, also includes an additional cash consideration of up to US$75 million at closing, dependent on certain criteria and business thresholds being met.

Piper Jaffray will be paid for the net assets of its branch network at the time of the close, which are expected to be valued at approximately US$300 million.

Based in Minneapolis, Piper Jaffray has more than 800 financial advisors, 190,000 household relationships and total client assets of $52 billion. It provides wealth management services to private clients including estate planning, retirement planning, brokerage and insurance. Its business has nearly 90 branch offices located across 17 states.

Piper Jaffray’s Financial Advisors will be integrated into UBS Wealth Management US and will enhance UBS Wealth Management’s presence in the Midwest and western U.S.. “This transaction is a natural fit with our current wealth management offering in the US,” said Marten Hoekstra, head of UBS Wealth Management U.S. “This network of talented individuals will allow UBS to serve a broader base of clients. Piper Jaffray Financial Advisors and clients will gain access to one of the world’s leading wealth management platforms with an unrivalled reputation in the marketplace.”

Piper Jaffray Companies will continue to operate its capital markets businesses, which include corporate and institutional services and public finance services. “This sale will be the culmination of a thoughtful and comprehensive process, during which we concluded that this strategic direction will ensure that each of the business segments will have the necessary resources to achieve sustainable, competitive performance,” said Andrew Duff, chairman and CEO of Piper Jaffray Companies. “This transaction will create the best overall result for our clients, employees and shareholders.”

“We believe UBS will provide Private Client Services clients with some of the best wealth management services in the world, and will provide our transferred employees with a culture and strategy similar to the one we have at Piper Jaffray,” said Duff.

The transaction will enable Piper Jaffray to focus on its single goal of becoming the leading middle-market investment bank. “This is an outstanding opportunity to build on the successful foundation we’ve established in the capital markets,” said Duff.

Piper Jaffray will redeploy capital from the transaction to enhance existing businesses, expand into new businesses that support current strategies, pay down debt, and repurchase common stock.

“We will dedicate the appropriate resources to manage this transition smoothly for our clients as well as for the employees affected by this divestiture,” said Duff. As part of this transaction, Piper Jaffray anticipates a reduction in staff of approximately 350 employees primarily in the Twin Cities, and will provide enhanced severance packages and out-placement services for those affected.