B. Riley buys investment bank FBR in a merger; financial services M&A picks up

B. Riley Financial Inc. (Nasdaq: RILY) has reached a deal to acquire FBR & Co. (Nasdaq: FBRC), an investment banking and brokerage firm, for approximately $160.1 million. The merger agreement results in a newly combined firm with an increased capital base and “meaningful revenue and expense synergies,” according to B. Riley CEO Bryant Riley.

FBR, headquartered in Arlington, Virginia, is an independent investment bank which spun out from the firm’s parent company in 2007. The original business was launched as a research and securities trading company specializing in the financial services industry in 1989. The newly combined company creates a small cap investment bank and brokerage with capital raising capabilities, such as: direct lending, recapitalizations, formation capital and growth capital, and public market offerings.

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