Morgan Keegan will also pay Regions a dividend of $250m before closing the deal, resulting in total proceeds of $1.18bn to Regions.
As part of the acquisition, Morgan Keegan CEO John Carson will join Raymond James Financial as president and will oversee Fixed Income and Public Finance.
Raymond James said that the addition of Morgan Keegan’s more than 1,000 private- client financial advisers would increase its adviser ranks to more than 6,000.
The acquisition is expected to expand Raymond James’ private client wealth management and capital markets businesses.
The transaction, which is subject to regulatory approvals and customary closing conditions, is expected to close during the first quarter of 2012.
Raymond James was advised by JP Morgan Securities and represented by Morrison & Foerster.
