Raymond James buys Morgan Keegan

After months of speculation, Raymond James Financial, Inc. late this afternoon announced that it has entered into a definitive stock purchase agreement to acquire Morgan Keegan & Company, Inc. and related affiliates from Regions Financial. The cost of the deal was put at $930 million, making it the largest acquisition in the history of the publicly traded Raymond James. “While our preference is generally organic growth, we have used strategic mergers to grow throughout our history when the timing and pricing are right and, most importantly, when there is a strong cultural fit and clear path for integration,” said Raymond James CEO Paul C. Reilly in a statement. As part of the merger, Morgan Keegan CEO John Carson will join Raymond James Financial as president and will oversee Fixed Income and Public Finance. Other senior leaders from Morgan Keegan will be joining the firm in roles to be determined. “We are excited to be joining Raymond James. I see it as a firm that provides the resources of a major Wall Street firm while maintaining the client-first culture of a regional,” noted Carson. “I am confident the expanded services and deep expertise at Raymond James will benefit our clients and allow us to continue providing the highest levels of service.” In the statement announcing the deal, Raymond James emphasized that it is committed to maintaining a large presence in Memphis, saying it has plans to make the city its headquarters for its fixed-income and public finance business.