B. Riley Financial buys FBR for $160 million

Combination of investment banks will add to presence in small-cap market.
FEB 21, 2017

B. Riley Financial Inc., a Los Angeles-based investment banking and financial advisory firm that serves smaller companies, is buying the similarly focused Arlington, Va.-based FBR & Co. for about $160.1 million in cash and stock. Under terms of the deal, FBR shareholders will receive 0.671 B. Riley shares and $8.50 in cash for each FBR share they own. Based on Friday's closing stock prices, the deal values FBR shares at $20.28 each, a 21% premium. As part of the deal, FBR will deliver $33.5 million in cash to B. Riley at closing, which is expected to occur during the second quarter of 2017. Richard Hendrix, FBR's current chairman and chief executive, will assume the role of CEO of the combined investment banking and brokerage businesses, which will become a subsidiary of B. Riley Financial. The combined company "will become a leader in small-cap investment banking and brokerage in the U.S., with 600 names under research coverage," B. Riley Financial said in a release. "The combined firm will enjoy an increased capital base as well as meaningful revenue and expense synergies," said Bryant Riley, his company's chairman and chief executive, adding that FBR's banking and brokerage businesses have little overlap of clients, research coverage and capital-raising activities with B. Riley's current operations. FBR was part of financial firm Friedman Billings Ramsey Group (now known as Arlington Asset Investment) until 2007, when it was spun off as an independent firm.

Latest News

RIA M&A stays brisk in first quarter with record pace of dealmaking
RIA M&A stays brisk in first quarter with record pace of dealmaking

Driven by robust transaction activity amid market turbulence and increased focus on billion-dollar plus targets, Echelon Partners expects another all-time high in 2025.

New York Dems push for return of tax on stock sales
New York Dems push for return of tax on stock sales

The looming threat of federal funding cuts to state and local governments has lawmakers weighing a levy that was phased out in 1981.

Human Interest and Income Lab streamline workflows for retirement-focused advisors
Human Interest and Income Lab streamline workflows for retirement-focused advisors

The fintech firms' new tools and integrations address pain points in overseeing investment lineups, account monitoring, and more.

Buy or sell Canada? Wealth managers watch carefully as Canadians head to the polls
Buy or sell Canada? Wealth managers watch carefully as Canadians head to the polls

Canadian stocks are on a roll in 2025 as the country prepares to name a new Prime Minister.

Carson, Lido strengthen RIA networks with bicoastal deals
Carson, Lido strengthen RIA networks with bicoastal deals

Carson is expanding one of its relationships in Florida while Lido Advisors adds an $870 million practice in Silicon Valley.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.