Stifel Financial Corp. to Buy KBW Inc.

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Stifel Financial (NYS: SF) has reached agreement to acquire financial services firm KBW (NYS: KBW) in a deal valued at more than $575 million, the companies announced today.

The aim of the "merger agreement" is to "create the premier middle-market investment bank with a specialized focus on the financial services industry."

The agreement was unanimously approved by the boards of the two companies. Provided the share price stays in a certain range prior to closing, the deal will see holders of KBW common stock receive a total of $17.50 per share. This is to be comprised of $7.50 in Stifel stock and $10 in cash.

 Approximately $250 million in excess capital on KBW's balance sheet is expected to be immediately available to Stifel upon closing.

Separately, KBW announced its 3Q results today. The company posted revenues of $50.6 million and a non-GAAP operating net loss of $3.1 million for the period. The former was slightly higher on a year-over-year basis, while net loss narrowed by $11.5 million over that time. The company also declared a quarterly dividend of $0.05 per share.

The article Stifel Financial Corp. to Buy KBW Inc. originally appeared on

Eric Volkman has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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