Stifel Financial Corp (NYSE:SF) entered into an agreement to purchase the wealth and investment unit of Barclays PLC (ADR) (NYSE:BCS) in the United States.
The two institutions have not released further details regarding the purchase. The U.S. division of Barclays’ business had a total customer asset of roughly $56 billion and about 180 financial advisers by May 31. Client loans were roughly $1.5 million while the organization’s balance sheet registered assets worth $1.4 million. The advisory trade of Barclays has operations in New York and a few other cities in the United States.
According to the CEO of Barclays global wealth and investment management, Akshaya Bhargava, the sale of the business to Stifel represents some good fortunes to Barclays and its clientele. The terms of the deal are expected to finalize by November. After that, Stifel will gain a new status as the new private wealth distribution partner in the U.S. Stifel will assume control over various Barclays’ equities and credit. It will also take over new issue securities in the United States.
Akshaya Bhargava also announced that Barclays was excited because they were able to enter into a sale agreement with Stifel. He also claimed that Stifel is committed to pushing the growth of the firm over a long term basis. Stifel is also focused on giving customers a wide range of products and services.
Stifel is one of the securities firms that have benefited from rapid expansion by buying into other firms since the financial crisis. One of the most significant acquisitions that the company has ever undertaken is buying an old brokerage firm called Stern. The cost of the acquisition was $150 million.
Stifel recently acquired the trust service and investment advisory unit of Legg Mason Inc (NYSE:LM). It also acquired KWB Inc, an investment bank situated in New York. Adding Barclays to its portfolio will allow the firm to increase its profit margins.