B. Riley Financial Inc. announced Tuesday at deal to buy FBR & Co. in a cash and stock deal that values FBR at about $160.1 million. Under terms of the deal, FBR shareholders will receive 0.671 B. Riley shares and $8.50 in cash for each FBR share they own. Based on Friday's closing stock prices, the deal values FBR shares at $20.28 each, a 21% premium. As part of the deal, FBR will deliver $33.5 million in cash to B. Riley at closing, which is expected to occur during the second quarter of 2017. Richard Hendrix, FBR's current chairman and chief executive, will assume the role of CEO of the combined investment banking and brokerage businesses. The banks' stocks, which are currently halted for news, are set to resume trade at 8:30 a.m. ET. B. Riley's stock has soared 90% over the past 12 months, while FBR shares have tacked on 3.9% and the S&P 500 has climbed 23%.
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