Stifel Financial agreesfor strategic merger with KBW

St Louis based brokerage firm Stifel Financial has agreed to acquire KBW in a cash and stock transaction estimated at $575m, to build its middle-market investment bank, with focus on the financial services industry. As per terms of the merger deal, approved by both boards of directors, KBW shareholders will receive$17.50 per share, comprised of $10 per share in cash and$7.50 per share in acquirer's common stock. Immediately on completion of the transaction, nearly$250m in excess capital on KBW's balance sheet is expected to be available to Stifel, the company said. The integrated entity will offer investment banking, sales and trading, and financial research through KBW's Keefe, Bruyette & Woods broker-dealer subsidiary, which will continue to trade as an independent subsidiary of Stifel. Thomas Michaud will join Stifel's board and management team upon completion of the merger and will remain as chief executive officer of the KBW business unit. Headquartered in New York,KBW trades through its broker dealer subsidiaries, Keefe, Bruyette & Woods, Keefe, Bruyette & Woods and Keefe, Bruyette & Woods Asia in the US, Europe and Asia.