The Swiss company is building its foreign business with acquisitions, agreeing last month to buy Piper Jaffray Cos.' (PJC) private client branch network for at least $500 million in cash.
UBS said Tuesday it will integrate Pactual into its investment banking, wealth management and asset management businesses, making the combined entity the foundation of its operations in Brazil.
"This deal is a cornerstone in our strategy to increase penetration in emerging markets within fixed income and equities," Huw Jenkins, chief executive of UBS Investment bank, said in the statement. He noted that the investment banking fee pool in Brazil was one of the largest among emerging economies in 2005.
Pactual offers investment banking services for institutional clients in local and international markets. The company's capital markets business is a top tier underwriter of Brazilian equity and debt sales, UBS said.
A private partnership, Pactual has its main offices in Sao Paulo and Rio de Janeiro. It was founded in 1983 as a securities dealer and has 517 employees, including 33 partners.
Pactual Asset Management had $18.6 billion under management as of March 31, while the wealth management arm oversees a further $4.6 billion for high net worth individuals.
UBS shares closed at CHF150.6 on Monday.
