Jefferies Group Acquires Quarterdeck

Jefferies Group Inc., a New York-based investment bank, said it acquired Quarterdeck Investment Partners, a Century City firm that specializes in mergers and acquisitions in aerospace and defense.

Terms weren’t disclosed. But in recent months Jefferies had been increasing its stake in Quarterdeck, which has 26 employees and was founded a decade ago by Jon B. Kutler, a former naval officer.

Quarterdeck mainly handles transactions dealing with mid-market defense companies with revenue of $25 million to $500 million.

Quarterdeck has benefited from a major shakeout among mid-tier companies as defense spending increases have renewed interest in the sector, a trend that apparently attracted Jefferies to the highflying firm. Kutler will continue to run the business.