BRADENTON, Fla. — Jackson Securities LLC is being spun off by Atlanta Life Financial Group, which acquired the investment bank in 2007.
Subject to regulatory approval, Jackson will be acquired by minority-owned, New York-based M.R. Beal & Co. Jackson is headquartered In Atlanta.
Specific terms of the transaction, inked Tuesday, were not disclosed.
M.R. Beal is acquiring Jackson's assets in exchange for stock, Stanley Grayson, Beal's chief operating officer, said in an interview.
The deal will close immediately after regulatory approval is granted in the next 30 to 60 days, he said.
"This consolidation of these two well-established firms represents the integration of strong equity sales and trading departments, the melding of two solid equity execution platforms, and the opportunity to leverage the well regarded municipal finance relationships and track records of both firms to broader geographic markets," chief executive officer Bernard B. Beal said in a statement.
The combined firm will be headed by Bruce Gow, Jackson's president, who will remain based in Atlanta, Beal and Grayson said.
The acquisition gives Beal a chance to expand in the South, according to Grayson.
"I think in our platform, we are looking to have a substantial presence in the Southeast in particular, and I think it's going to be a good fit in terms of our business and where we are going," he said. "It certainly will give us a solid beachhead in the Southeast, which we as a firm probably never consistently had."
William Taggart, president and chief executive officer of Atlanta Life, said the merger would create "a more balanced business model" with an extended geographical reach.
"We are very excited about the upside potential of the new firm and will seek other like-minded partners for future expansion," Taggart said in a release.
Atlanta Life did not respond to a request for additional comment.
Jackson Securities was established in 1987 by the late Maynard H. Jackson, who was mayor of Atlanta from 1974 to 1982. He died in 2003.
The acquisition will give Beal the "good will" that Jackson already enjoys because of its founder and municipal bond work around the country, Grayson said.
"That is one of the key attractions for us," he said, referring to Jackson's reputation. "Having Atlanta Life, as [Jackson's] parent and thus as a minority stockholder, available to us to help identify corporate and municipal opportunities around the country will also be valuable."
Eventually, a name change that most likely will be some combination of Beal and Jackson will occur, he said.
Offices in Atlanta and Miami will remain open. Some offices will be consolidated, including those in New York, Illinois, Texas and California.
Founded in 1988, Beal is an investment bank specializing in municipal and corporate finance, taxable and tax-exempt, fixed-income sales and trading, and equity sales and trading. The company was the 25th-ranked senior manager last year with $2.4 billion in deals, according to Thomson Reuters.