Stifel, Nicolaus & Company, the principal operating subsidiary of Stifel Financial, has entered into an exclusive agreement with UBS Financial Services to acquire up to 55 branches from the UBS Wealth Management Americas branch network.
The 55 offices are located in 24 states throughout the US, and employ an aggregate of approximately 320 financial advisers, who have approximately $15 billion in assets under management.
The transaction is structured as an asset purchase for cash at a premium over certain balance sheet items, subject to adjustment. The payments to UBS include an upfront cash payment of up to approximately $27m based on the actual number of branches and financial advisers acquired by Stifel Nicolaus; annual earn-out payments for the two-year period following the closing of the transaction principally based on the performance of the UBS financial advisers who become Stifel Nicolaus employees; and aggregate payments of up to approximately $19m for net fixed assets and employee forgivable loans.
The number of employees, branches and assets to be acquired by Stifel is expected to be determined in approximately 35 to 45 business days. The consummation of the transaction is subject to a number of customary closing conditions and the approval of all required governmental and other regulatory entities.
