Under the terms of the agreement, KBW shareholders will receive US$17.50 per share, with US$10 per share in cash and US$7.50 per share in Stifel common stock.
The price represents a 7% premium over KBW’s closing stock price on 2 November 2012.
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The combined company will provide investment banking, sales and trading, and research in the financial services vertical through KBW’s Keefe, Bruyette & Woods broker-dealer subsidiary, which will continue to operate as an independent subsidiary of Stifel following completion of the transaction.
Thomas Michaud, president and CEO of KBW, will join Stifel’s board and management team upon completion of the merger and will remain CEO of the KBW business unit, Stifel said in a statement.
Commenting on the deal, Michaud said, "This merger will allow KBW to focus on its strengths in the financial services sector while offering clients a greatly expanded array of products and services through the Stifel platform.
"KBW’s deep roster of client relationships will be supported by a strong institutional business and global wealth management business. With little overlap, this merger will provide a significant opportunity to grow our combined companies’ market share," he added.
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By GlobalDataThe merger is subject to approval by KBW shareholders and customary regulatory approvals.
