B. Riley Financial buys FBR for $160 million

Combination of investment banks will add to presence in small-cap market.
FEB 21, 2017

B. Riley Financial Inc., a Los Angeles-based investment banking and financial advisory firm that serves smaller companies, is buying the similarly focused Arlington, Va.-based FBR & Co. for about $160.1 million in cash and stock. Under terms of the deal, FBR shareholders will receive 0.671 B. Riley shares and $8.50 in cash for each FBR share they own. Based on Friday's closing stock prices, the deal values FBR shares at $20.28 each, a 21% premium. As part of the deal, FBR will deliver $33.5 million in cash to B. Riley at closing, which is expected to occur during the second quarter of 2017. Richard Hendrix, FBR's current chairman and chief executive, will assume the role of CEO of the combined investment banking and brokerage businesses, which will become a subsidiary of B. Riley Financial. The combined company "will become a leader in small-cap investment banking and brokerage in the U.S., with 600 names under research coverage," B. Riley Financial said in a release. "The combined firm will enjoy an increased capital base as well as meaningful revenue and expense synergies," said Bryant Riley, his company's chairman and chief executive, adding that FBR's banking and brokerage businesses have little overlap of clients, research coverage and capital-raising activities with B. Riley's current operations. FBR was part of financial firm Friedman Billings Ramsey Group (now known as Arlington Asset Investment) until 2007, when it was spun off as an independent firm.

Latest News

Easy to buy, harder to exit: The liquidity risk hidden inside ETFs
Easy to buy, harder to exit: The liquidity risk hidden inside ETFs

Getting a client into a fund has never been easier – but after that, the hardest part is yet to come.

FINRA bars NYLIFE rep who used smart glasses to cheat on Series 6
FINRA bars NYLIFE rep who used smart glasses to cheat on Series 6

A former NYLIFE Securities rep was permanently barred after using internet-enabled glasses to cheat on the Series 6 exam

Vanguard settled Just Invest lawsuit weeks before Altruist deal
Vanguard settled Just Invest lawsuit weeks before Altruist deal

Both of Vanguard's acquisitions have targeted the RIA industry, but the first ended in a legal settlement just weeks before buying Altruist.

Ex-Raymond James duo launch Proxima on Concurrent's platform
Ex-Raymond James duo launch Proxima on Concurrent's platform

Chris Davitt and Anupam Singh bring institutional recruiting muscle to a firm built for advisors chasing equity and independence.

Osaic names Sayee Bellamkonda as first chief AI and technology officer
Osaic names Sayee Bellamkonda as first chief AI and technology officer

Appointment continues a wave of AI leadership hires reshaping wealth management as advisory firms race to build out digital and data infrastructure.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income