$67 million offered for Memphis investment firm
Wunderlich had sought merger to help spur firm's growth
Ted Evanoff
One of Memphis’ fastest-growing investment firms is being acquired.
A $67 million buyout of Wunderlich Securities will keep Gary Wunderlich in place as chief executive.
Driving the deal is California investment company B. Riley & Financial Inc., which announced a definitive agreement is in hand for the Wunderlich takeover, expected to close in June.
Wunderlich employs 440 workers nationwide, including 110 in Memphis, and manages $10 billion for clients.
The firm was opened in 1996 by Wunderlich, then a 26-year-old investment banker. The company will continue as a Riley subsidiary under the name Wunderlich Securities.
The company stood out in Memphis in 2014 for hiring former Morgan Keegan staff following the purchase of Morgan Keegan by Florida-based Raymond James Financial.
Wunderlich said about 10 more administrative jobs over time could appear in the Memphis office as a result of the deal.
“Over time, we'll have the opportunity to take on more responsibility in the Memphis location,’' Wunderlich said.
B. Riley’s offer includes $36 million in cash, 1.9 million shares of B. Riley Financial common stock, and warrants to purchase 0.82 million shares of B. Riley common stock. Wunderlich had twice brought in significant capital, in 2007 and 2013. The Riley stock amounts to a payment to those investors.
In 2013, California-based Altamont Capital Partners joined senior partners of Wunderlich Securities in investing $40 million in the Memphis firm.
In 2007, the Memphis company received a $20 million investment from Coil Investment Group, a Norwegian firm whose head officer became chairman of the board at Wunderlich Securities.
Growing market share in the capital markets business turned out to be more difficult for Wunderlich than expected following the 2008 financial crash on Wall Street, reported the trade journal S&P Global Market Intelligence.
B. Riley is a publicly traded company based in Woodland Hills, Calif.
S&P, citing details from the presentation in New York, reported "Wunderlich generated $27.7 million of revenue from its investment banking and capital markets business for the 12-month period ended March 31."