JSM Financial: U.S. investment bank Stifel Financial to buy rival Thomas Weisel for around $300 mln.

April 26, 2010 - PRLog -- In a stock deal, U.S. investment bank Stifel Financial Corp has announced that it has agreed to buy its rival Thomas Weisel Partners Group Inc. for around $300 million, JSM Financial has learned. The move is aimed at expanding Stifel’s wealth management and research offerings.

Under the agreement, each Thomas Weisel share will be exchanged for 0.1364 of a Stifel Financial share, offering a 74 % premium based on the April 23rd close of $55.74.

JSM Financial sources also indicate that the price is inclusive of restricted stock and warrants that Thomas Weisel will receive.

Stifel Financial’s chief executive Ronald Kruszewski will continue to head the firm while Thomas Weisel’s CEO will take up the position of co-chairman alongside Kruszewski.

Stifel Financial Group, headquartered in St Louis, Missouri, has, JSM Financial was informed, purchased seven small brokerages since 2009 and has been looking to increase its investment banking and capital markets businesses, while simultaneously expanding its commercial bank to support clients.

Thomas Weisel Partners Group Inc will be merged into a Stifel Financial unit and become a wholly owned subsidiary, according to a statement from the firm.

The deal is expected to close towards the end of June.

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