NEW YORK, (Reuters) – Former employees of elite Wall Street firms are triumphing over their previous investment banks in Google Inc’s blockbuster $12.5 billion deal to buy Motorola Mobility Holdings Inc.
Motorola hired Centerview Partners and Qatalyst Partners as its advisers on a deal expected to generate $30 million to $35 million for the bankers, according to sources close to the matter.
Centerview was founded in 2006 by former bankers at Morgan Stanley and UBS AG, while Qatalyst is the bastion of tech deals founded in 2008 by Frank Quattrone, who earned his spurs at Credit Suisse First Boston and Morgan Stanley.
Lazard Ltd, the blue-blooded advisory firm that was transformed into a Wall Street power by the late Bruce Wasserstein — another First Boston veteran — is counseling Google for a fee that could reach $32 million based on the deal value, according to Freeman & Co.
Paul Haigney, a Lazard vice chairman who is based in San Francisco, and the firm’s technology banking head Antonio Weiss are leading the Google team.
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Morgan Stanley and Credit Suisse, which were lead underwriters on Google’s landmark initial public offering in 2004, apparently have no place in the deal. Morgan Stanley ranks as the top M&A adviser on U.S. technology deals this year, according to Thomson Reuters.
The deal will boost Qatalyst, Lazard and Centerview to 12th, 13th and 14th place respectively in the tech, media and telecommunication sector deal tables.
David Handler, who joined Centerview in 2008 to head its global tech practice and who helped Motorola in January split into two companies, is the chief adviser to Motorola Mobility, sources said. He previously worked at UBS and the now-defunct Bear, Stearns & Co.
The lead banker for Qatalyst, whose split of the Motorola advisory assignment could not be determined, is former Credit Suisse technology banking co-head George Boutros.