Stifel Financial Acquiring Thomas Weisel For $300 Million
San Francisco-based investment bank, Thomas Weisel Partners Group Inc (NASDAQ: TWPG), has agreed to be acquired by rival Stifel Financial Corp (NYSE: SF) in a stock only deal amounting to roughly $300 million.
Under the deal, every TWPG share will be exchanged for 0.1364 shares of Stifel Financial, reflecting a 74% premium based on SF’s closing price of $55.74 on Friday. The price would include restricted stock and warrants that Thomas Weisel will receive.
Although the deal has received approval from both the companies' boards, it is still awaiting the approval of Thomas Weisel's shareholders and clearance from regulators. The companies hope to close the deal around June 30, which will lead to the creation of a major middle-market investment bank with stronger offerings in investment banking, research and wealth management.
While SF’s shares have slipped 3.28%, TWPG has soared 66.97% at 10:13 am.
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