By Sam Boughedda
Investing.com — Raymond James Financial Inc (NYSE:RJF) announced plans to acquire TriState Capital Holdings Inc (NASDAQ:TSC) in a combination cash-and-stock deal priced at $1.1 billion.
Shares of TriState Capital jumped 31%, while Raymond James shares fell 3%.
Both companies specialize in financial advice. TriState has private banking, commercial banking and investment management products and services.
TriState Capital shareholders are to receive $6 in cash and 0.25 Raymond James shares for each share of TriState Capital stock they own, representing a per share consideration of $31.09 based on Raymond James stock's closing price on October 19.
In addition, Raymond James has entered into an agreement with the sole holder of the TriState Capital Series C Preferred shares to convert them to common shares at the prescribed exchange ratio and cashed out at $30. TriState Capital Series A Preferred Stock and Series B Preferred Stock will be converted into equivalent Preferred shares of Raymond James.
"This acquisition further illustrates our commitment to utilize excess capital through organic and inorganic growth that we expect to drive strong returns for shareholders over the long term, " said Paul Reilly, chairman and CEO of Raymond James.
TriState Capital will operate as an independently branded firm and act as a stand-alone division and subsidiary of Raymond James. Jim Getz will remain chairman, and Brian Fetterolf will continue as CEO.
TriState's also reported third quarter earnings, including revenue of $60.86 million, which was below the Wall Street consensus of $61.41 million. However, its earnings per share of 44 cents beat the expectation of 41 cents.