B. Riley Financial Inc. announced Thursday that it will acquire Memphis, Tenn.-based Wunderlich Securities in a deal valued at $67 million.
The Woodland Hills financial services company is set to pay $36 million in cash, 1.9 million shares of B. Riley common stock and warrants to purchase 820,000 additional shares of B. Riley common stock.
Wunderlich is a full-service investment firm, providing offerings for individuals and corporations in areas such as wealth management, investment banking and trading services. In the 12 months ended March 31, 2017, Wunderlich made $117 million in revenue.
“In addition to significantly enhancing our wealth management business, Wunderlich’s brokerage and research franchises strategically align with our current operations and expand our capabilities with minimal overlap of clients and coverage,” Chief Executive Bryant Riley said in a statement.
Wunderlich’s Wealth Management practice combined with B. Riley Capital Management, the company’s investment advisor arm, will have approximately $11 billion in assets.
The acquisition is subject to regulatory approval and other customary closing conditions and is expected to close in June.
In March, B. Riley announced its pending acquisition of investment banking and brokerage firm FBR & Co. of Arlington, Va. for $160 million, which is also expected to close next month.
B. Riley (RILY) shares closed up 35 cents, or 2.6 percent, to $14.05 on the Nasdaq.