Stifel Financial to Buy Fellow Investment Bank KBW
ST. LOUIS - Stifel Financial is buying KBW in a deal worth more than $575 million and creating a middle-market investment bank focused on the financial services industry.
Shareholders of KBW Inc. will receive $10 per share in cash and $7.50 per share in Stifel common stock. Holders of certain restricted KBW shares also will receive $17.50 in Stifel common stock.
The price represents a 7 percent premium over KBW's Friday closing stock price.
The companies value the deal at more than $575 million, which includes KBW's outstanding shares and restricted stock awards. About $250 million in excess capital on KBW's balance sheet will be available to St. Louis' Stifel Financial Corp. when the deal closes.
The deal was approved by the boards of both companies, but remains subject to KBW shareholder approval.