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Raymond James Financial announced this morning that it has closed the deal to purchase regional firm Morgan Keegan from Regions Financial Corp. for $1.2 billion in cash. The combined firm will have 6,500 advisors and $372 billion in total client assets.
The combined broker/dealer subsidiary, which includes Morgan Keegan advisors and Raymond James & Associates, its employee channel, will be known as Raymond James | Morgan Keegan. John Carson, former CEO of Morgan Keegan, has been appointed president and executive committee member of Raymond James Financial, the parent company, alongside CEO Paul Reilly. Heâll also serve as head of fixed income.
Morgan Keeganâs top 12 executives have joined Raymond James, as well as about 1,000 advisors from the private client group. Of the 600 advisors who were offered a retention award, 96 percent have signed paperwork to accept the offers to stay, said Dennis Zank, chief operating officer. The remaining 400 or so FAs have stayed on so far, and Zank expects to retain virtually of those reps.
âI think thereâs this misconception that if an advisor wasnât offered retention, that they wouldnât be joining the firm, and nothing could be further from the truth,â Zank said.
But at least seven advisors have jumped ship since December, although itâs not clear whether they made the decision before or after Raymond Jamesâ announcement.
The next step in the integration process will be to roll out Raymond Jamesâ products and services to Morgan Keegan advisors, including its equity research, trust services, marketing, and bank products, Zank said. The conversion of Morgan Keeganâs private client accounts onto Raymond Jamesâ platform will take the longest, and this is expected to finish by early 2013. The firm is already in the process of integrating the equity capital markets and fixed income capital markets capabilities.