Stifel snags Thomas Weisel in $300M merger

Company bulks up mid-market investment banking capabilities in all-stock deal; second deal in days

Apr 26, 2010 @ 8:15 am

By InvestmentNews staff

Stifel Financial Corp. and Thomas Weisel Partners Group, Inc. today announced that they have reached a definitive agreement to merge operations. The deal, an all-stock transaction, is valued at more than $300 million.

Thomas Weisel Partners, an investment bank based in San Francisco, will be merged into a subsidiary of Stifel and become a wholly-owned subsidiary of the St. Louis-based financial services holding company. The deal calls for each share of Thomas Weisel to be exchanged for 0.1364 shares of Stifel Financial common stock.

The transaction, which is subject to approval by Weisel shareholders and regulators, is expected to close on or about June 30, 2010.

The merger marks the second deal for Stifel in less than a fortnight. On April 16, the publicly traded company — and parent of broker-dealer Stifel, Nicolaus & Company, Incorporated — acquired investment advisory firm Missouri Valley Partners from First Banks Inc.

Estimated annual revenues of a combined Stifel/Weisel are approximately $1.6 billion. The merged companies have a pro forma market cap of approximately $2 billion.

“With the merger, Stifel's revenue mix remains balanced between its institutional group and global wealth management segments,” Ronald J. Kruszewski, chairman and CEO of Stifel Financial, said in a statement

Thomas Weisel does offer brokerage, advisory and cash management services to high-net-worth individuals and corporate clients. But the company is best known for its mid-market i-bank operation.

“Our platform adds key growth sectors to Stifel's investment banking business, particularly in technology, healthcare and energy," Thomas W. Weisel, chairman and CEO of Thomas Weisel Partners said in a statement. "Stifel has one of the largest global wealth management groups with nearly $100 billion in client assets, which is a great complement to the combined investment bank.”

While Mr. Kruszewski and Mr. Weisel will be co-chairmen of the board following the merger, Mr. Kruszewski will remain president and CEO of Stifel Financial Corp.

0
Comments

What do you think?

View comments

Recommended for you

Featured video

Events

3 Questions to ask yourself when making your succession plan

Michael Futterman from Janus Henderson Investors has sage advice for advisers as they approach retirement.

Latest news & opinion

Cetera Financial Group close to announcing its acquisition by private equity

Details of sale to one or more P-E firms could be announced as early as today.

10 best states for retirement

When it comes to places to retire, here are the 10 best states for enjoying your golden years.

Focus Financial raises goal for IPO to $600 million

Company's revised goal from $100 million could be a sign RIA valuations are rising.

CFA Institute adding crypto, blockchain to curriculum

Subjects will be added to its Level I and II coursework for the first time next year.

Trump tax plan making dividend ETFs hot

Funds that are seeing inflows largely steer clear of sectors like utilities.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print