Stifel Financial (SF) has inked a deal to acquire Vining Sparks and its affiliates. While terms of the deal remain under wraps, the transaction should close in Q4 2021. SF shares rose 0.49% to close at $69.06 on September 29.
Stifel Financial is a holding company that offers financial services through its wholly-owned subsidiaries. Some of the services it offers include investment banking, trading, and investment advisory services.
The transaction is expected to merge two similar-centric fixed-income businesses. It should allow Stifel Financial to leverage Vining Spark’s core relationships, strengthen its competitive edge, and enhance its position as a market leader in the financial services sector. (See Stifel Financial stock charts on TipRanks)
Established in 1981, Vining Sparks offers institutional fixed-income brokerage, balance sheet, and underwriting services. It currently boasts a clientele base of more than 4,000 institutions spanning across 50 states in the U.S.
Vining Sparks CEO, Mark Medford, stated, “By combining with Stifel, our depository clients, as well as our other clients, will not only benefit from a broader product offering through Stifel’s established presence in financial services but also from the strength of the firm’s balance sheet and we look forward to growing our business for the future.”
Vining Sparks will join Stifel Financial having averaged $150 billion in trading volume annually, generating an average of nearly $150 million in annual revenue since 2008.
In July, JMP Securities analyst Devin Ryan reiterated a Buy rating on the stock with an $84 price target, implying 21.63% upside potential to current levels.
Consensus among analysts is a Moderate Buy based on 1 Buy.
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