Raymond James plans to acquire Pittsburgh firm for $1.1B

St. Petersburg-based Raymond James Financial Inc. plans to acquire TriState Capital Holdings in a $1.1 billion deal.

TriState Capital is the nation’s leading provider of securities-based loans for clients of independent investment, and through a branchless bank model it has over $12 billion in assets. 

Raymond James would purchase TriState through a combination of a cash and stock transaction, according to Raymond James’ announcement Wednesday. The deal is expected to close in 2022.  

“As we have followed the firm and management team over the past several years, including as its largest deposit client, we’ve admired its leadership position in offering securities-based lending through a scalable and robust technology platform,” Raymond James CEO and Chairman Paul Reilly said in the news release. “Importantly, this acquisition further illustrates our commitment to utilize excess capital through organic and inorganic growth that we expect to drive strong returns for shareholders over the long term.”

Under the terms of the agreement, TriState Capital common stockholders will receive $6 cash and 0.25 Raymond James shares for each share of TriState Capital common stock, which represents per-share consideration of $31.09 based on the current closing price of Raymond James (NYSE: RJF). 

TriState Capital will continue operating as a separately branded firm and as a standalone division and independently chartered bank subsidiary of Raymond James. Its executives will also remain in place. 

“Our clients will continue to benefit from working with the same talented teams and the TriState Capital and Chartwell brands they already know so well, along with the technology we’ve invested in to provide an exceptional and responsive client experience,” TriState CEO and Chairman Jim Getz said in a statement. 

Raymond James’ strong balance sheet will provide supplemental capital and liquidity to continue enabling the firm’s business model to meet clients’ commercial and asset management needs, he added. 

The planned acquisition follows the recent news of Raymond James acquiring the entire share capital of London-based wealth management firm Charles Stanley Group PLC in a $387 million deal.