Nov. 1 (Bloomberg) -- GCA Holdings Corp., the second-ranked adviser on Japanese mergers this year, will acquire U.S. investment bank Savvian LLC for about 90 billion yen ($780 million) to expand into international advisory work.

The Tokyo-based firm will pay for the acquisition with shares, it said in a statement today. Savvian, formed in 2003 and based in San Francisco, has advised on more than 70 deals worth a combined $12 billion, according to the statement.

``Japan's market is poised to see significant growth,'' James Avery, Savvian managing director, said at a press conference in Tokyo today. ``We can help U.S. clients that need an introduction to companies in Japan.''

GCA shares rose 11 percent on optimism the deal will help it win more advisory fees. The value of total cross border transactions involving Japanese companies on an announced basis was $56.9 billion this year, compared with $93.4 billion for all of 2006, according to data compiled by Bloomberg.

``Japanese companies are increasingly seeking opportunities to buy assets overseas,'' said Masaki Iso, who oversees about $7.3 billion as head of Japanese equities at Yasuda Asset Management Co. in Tokyo. ``They realize they can't grow further if they stick to the home market.''

GCA shares rose 11 percent to 661,000 yen, the highest in almost four months, at the 3 p.m. close in Tokyo after earlier gaining as much as 17 percent.

Expanding Capabilities

GCA advised Nikko Cordial Corp. on its acquisition by Citigroup Inc. and wants to win more international business.

Savvian, controlled by partners including Chief Executive Officer Todd Carter, has offices in New York and Chicago.

GCA Savvian Group Corp., to be formed after the takeover, will have about 150 employees and expects 13.3 billion yen revenue for the year ending February. Akihiro Watanabe, managing partner of GCA, will head the new company, the statement said.

``This will enable us to increase advisory work on cross- border deals,'' GCA said in the statement. ``We can support Japanese firms going to the U.S. and Europe, and also overseas firms moving into Japan.''

GCA advised on 18 deals this year including the takeover of Nikko Cordial, Japan's third biggest securities firm. The firm will delist its shares from the Tokyo Stock Exchange on Feb. 26 and list GCA Savvian on March 3. Executives at GCA and Savvian will not be allowed to sell their shares for four years.

``We'll see more cross-border acquisitions in Japan as U.S. and European firms eye the second-biggest economy,'' said Iso. ``Some big Chinese and Indian companies may also seek acquisitions here.''

To contact the reporter on this story: Takahiko Hyuga in Tokyo at thyuga@bloomberg.net.

Last Updated: November 1, 2007 04:48 EDT