NEW YORK (The Deal) -- Stifel Financial (SF), the St. Louis, Mo.-based brokerage and investment bank, announced on Monday its agreement to acquire London-based Barclays' (BCS) U.S. wealth and investment management unit, Barclays Wealth Americas.
The terms of the deal were not disclosed. The deal is expected to close in mid-November 2015.
Stifel shares opened at a 52-week high on Tuesday of $58.47, but spent the day below that level, and were trading back at Monday's closing price of $57.84 late Tuesday afternoon.
As of last month, Barclays had about 180 financial advisors in the U.S. managing around $56 billion in assets, with each advisor handling an average of more than $300 million in assets, according to the announcement. In the U.S., Barclays' advisory business is concentrated in New York and 11 other major cities. The unit was created following Barclays' acquisition of the private investment management division of Lehman Brothers Holdings in 2008.
According to Stifel's investor presentation, Barclays has on-balance sheet assets of about $1.4 billion, and approximately $1.5 billion of client loans held through Barclays' clearing firm.
Credit Suisse (CS) analyst Christian Bolu said the deal is strategically attractive as it bolsters Stifel's capabilities within the high-net-worth private wealth business. The Barclays acquisition also gives Stifel enhanced capabilities in alternatives investing and capital markets -- these will be useful tools for attracting other high-net-worth advisors, he continued.