Private equity vehicle Atlas Merchant Capital has joined forces with QInvest, the Qatari investment bank, to launch a bid UK broker Panmure Gordon.
Both parties have agreed to take the 141-year-old firm private for £15.5 million pounds ($19 million) in an all cash deal, according to a statement on Friday.
Panmure, a mid-cap broker, specializes in market making, IPOs, equity research and prime services.
Andrew Adcock, chairman, said the independent directors believed the offer was "fair and reasonable".
Panmure now plans to hire senior merger advisory bankers, strengthen its equities division and expand its product offering, according to the statement.
QInvest already owns 43% of Panmure and bought its stake in 2009.
Atlas Merchant Capital was set up in 2013 by Bob Diamond specifically to make acquisitions in the financial services industry.
Diamond left Barclays in 2012 in the wake of thee Libor-rigging scandal.
Matthew Hansen, head of UK and Europe for Atlas, said there was a "significant opportunity to enhance Panmure Gordon's strong reputation and build a larger, successful boutique investment bank".