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Stifel will acquire rival brokerage Sterne Agee for $150 million.
The deal, announced by Stifel, should boost the firm's advisor force by one-third to roughly 2,800 advisors. With the addition of Sterne Agee's larger independent advisor force, the acquisition also provides Stifel with a launching pad to grow its business in the independent channel.
Stifel CEO Ronald Kruszewski said in an analyst call that the combination makes sense for multiple reasons. "This investment in the independent advisor business gives Stifel the opportunity to grow this platform. ? We think we're going to grow and compete in this channel," one that Stifel has "otherwise ignored."
Sterne Agee is valued at about $150 million, Stifel said. The firm will pay for the acquisition in a combination of common stock, valued at $51.55 per share, and...