The move adds weight to a wave of M&A activity in recent months and years in the wealth management arena and financial services industry at large.

The St Louis, MO-headquartered financial services holding company, Stifel Financial, is to acquire Sterne Agee Group, bolstering its global wealth management franchise with the addition of some 730 US financial advisors and independent representatives managing over $20 billion in client assets.

The close of the transaction, which values Sterne Agee at about $150 million, will consist of a combination of Stifel common stock – valued at $51.55 per share – and a cash consideration ranging from $77 million to $66 million.

The move, which boosts Stifel’s GWM workforce by 35 per cent to over 2,800, will enable it to expand in the independent advisor channel as well as offer a full range of trust and family office services.

After the market closed and the deal was announced yesterday, Stifel stock was up nearly 7 per cent, the New York Times reported.

“This acquisition furthers our goal of creating a balanced, well-diversified business mix with wealth management and institutional exposure,” said Ronald Kruszewski, chairman and chief executive of Stifel.

Indeed, Stifel has been fleshing out its broker-dealer and wealth management unit over the past year or so by making a number of hires and acquisitions. In November last year, for example, it completed its acquisition of 1919 Investment Counsel & Trust Company, formerly known as Legg Mason Investment Counsel & Trust.

The merger is subject to approval by Birmingham, AL-based Sterne Agee shareholders and is expected to close in the late spring, subject to regulatory approvals and customary conditions. The boards of directors of both companies have approved the merger.

The acquired businesses are expected to generate approximately $300 to $325 million in gross annual revenues and be accretive to shareholder value when fully integrated, Stifel said.

As well as ramping up Stifel's wealth management business, the move also complements Stifel’s fixed income capabilities with the addition of more than 200 professionals with “minimal overlap between the platforms.”

Meanwhile, Stifel also reported fourth quarter 2014 results, posting net income of $45.2 million, or $0.58 per diluted common share, on “record” net revenues of $578.1 million for the three months ended December 31, 2014. This compares with net income of $48.3 million, or $0.64 per diluted common share, on net revenues of $562.5 million for the prior year.