CHICAGO — Minneapolis-based investment bank Dougherty & Co. LLC will extend its trading and sales reach with the acquisition of fellow Minneapolis-based municipal broker-dealer Cronin & Co. Inc.

The two firms billed the deal as a union between neighbors, not competitors, and one that will provide each of their clients with an expanded array of products.

"Like us, they are a survivor of all the change that has occurred within our industry over the last 40 years," Mike Dougherty, chairman and founder of Dougherty Financial Group LLC, said in a statement. "Strategically, Cronin will nicely round out the business we do at Dougherty & Co. by giving us access to new customers and deepening our trading skills. It's a natural fit."

"We view this combination as a huge win for our clients," said Cronin's president Jay Hiniker. "We will continue to provide them with excellent service while broadening their product choices across all fixed income products."

The two have signed a definitive agreement on the acquisition. Terms were not announced. No changes in Cronin personnel are expected as a result of the acquisition, which is expected to close in early 2017.

The two are stalwarts of the Twin Cities and state financial services sector. Dougherty was founded in 1977 and is full-service investment banking firm. Cronin was founded in 1974 as a privately held broker dealer focused solely on fixed income securities for its institutional and individual investors. Cronin employs about 12 compared to Dougherty's 157.

Dougherty ranked fifth among senior managers in Minnesota last year, according to Thomson Reuters.

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