B. Riley to acquire National Holdings for $3.25 a share in cash

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Financial services company B. Riley Financial Inc. said Monday it has agreed to acquire National Holdings Corp. , an investment banking and asset management firm, for $3.25 a share in cash. B. Riley currently owns about 45% of the company’s common stock. The price offers a roughly 7% premium over National Holdings’ closing price Friday of $3.04. B. Rely said the deal will immediately boost earnings and will add more than 700 registered representatives managing $18.9 billion in client assets. National Holdings had revenue of $229.9 million in fiscal 2020. The deal “would enhance each of the companies’ complementary investment banking, capital markets and wealth management businesses, with the potential to meaningfully augment the combined platforms’ episodic and recurring results,” B. Riley said in a statement. It is expected to close in the first quarter. National Holdings shares rose 3.6% premarket on the news, while B. Riley shares were not yet active.
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