Siebert Brandford Shank & Co. has executed a letter of intent to acquire Siebert Capital Markets, a division of Siebert Financial Corp.
The acquisition will allow SBSCO to underwrite corporate debt and equity in addition to municipal bonds. Terms of the transaction weren't disclosed.
"Basically we will be doing corporate debt and equity offerings, participating in both new issues and the group has had an active share repurchase practice, and also [we will be doing] secondary trading," Suzanne Shank, President and CEO, said in an interview Monday.
Shank said it has been tough for SBSCO to enter the business while it was affiliated with Siebert Capital. The business was "a much more natural fit" for SBSCO, Shank said. Siebert Financial is a 49% stakeholder of SBSCO, a spokesman said.
The municipal underwriting group will continue to focus on its core clients, Shank said.
"[SBSCO] will still have the same muni focus, and that will be our dominant source of revenue for the firm for a while," she said.
Myles Turner, the senior managing director of SCM will continue to lead the group. Turner said in the press release the acquisition allows SCM to expand its client offerings. Shank said the firm is looking to hire more people to the new group.
A spokesman for SBSCO said though the acquisition isn't completed, it is "all but a done deal."
