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United States : INTL FCStone (INTL) inks agreement with Sterne Agee LLC to acquire certain assets.

INTL FCStone Inc. has signed a definitive agreement with Sterne Agee LLC, a wholly-owned subsidiary of Stifel Financial Corp., for acquisition of the Sterne Agee correspondent securities clearing business and the independent wealth management business.

This transaction includes the purchase of three broker dealer entities and two registered investment adviser entities. Completion of this deal is subject to limited conditions including regulatory approval.

According to information, the acquisition price will be approximately equal to the tangible net asset value of the combined businesses.

INTL expects the acquired businesses will produce a non-material loss in the first year following acquisition and be accretive in the second year. INTL will be retaining the existing management and staff of the Sterne Agee businesses it is acquiring, which has an employee base of around 160 people in Birmingham, AL, Charlotte, NC and Youngstown, OH.

Sean O'Connor, CEO of INTL FCStone Inc., said, "This acquisition fulfills a strategic objective allowing us to clear securities for our customers. We believe that the securities industry has rapidly consolidated, providing an opportunity for a well-capitalized, credible mid-market clearer. This acquisition will allow us to provide execution, market intelligence and post trade clearing across almost all asset classes in almost every market."

Charles Lyon, head of INTL FCStones Securities Division, said, "This acquisition brings $11 billion in client assets, over 100,000 accounts and 50 correspondent clearing relationships to INTL. The Sterne Agee clearing business is a well-respected franchise that provides us with a strong platform to grow our clearing and related securities activities. The independent wealth management business provides us with an excellent foothold in a segment of retail wealth management that is growing and should lead to additional opportunities in that space."

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Publication:Mena Report
Date:Jun 28, 2016
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