Stifel is acquiring City Financial, a firm with 40 private client advisers overseeing about $4 billion in client assets, according to the company.
It's the latest acquisition for Stifel, which has been growing its wealth management business through M&A deals.
The City Financial acquisition, announced Tuesday, includes its wholly owned subsidiary City Securities, which offers wealth management and public finance services in the Midwest. The Indianapolis-based firm was established in 1924.
"We believe the addition of City and its growing and profitable business to the Stifel platform further enhances the company's growing presence in these two attractive businesses," Stifel CEO Ronald Kruszewski said in a statement.
Stifel's recent acquisitions include Sterne Agee, a Birmingham, Alabama-based financial services firm, which Stifel bought for $150 million in 2015. Stifel sold the firm's independent broker-dealer unit earlier this year, citing regulatory concerns due to the Department of Labor's fiduciary rule, which goes into effect early next year.
The St. Louis-based firm also acquired Barclays' U.S. wealth management unit for an undisclosed amount in 2015. By the time the deal closed, the firm retained about 100 out of 180 Barclays advisers, with the remainder departing for rival firms.
City's advisers operate from eight offices in Indiana. Mike Bosway, CEO of City Financial, said that his management team and advisers have signed continuation agreements with Stifel.
"City Securities has been a market leader in Indiana for decades, and we believe our partnership with Stifel Financial will enhance our position in increasingly competitive markets," Bosway said.
Bosway has been with City for more than three decades, according to the company's website. He spent the first 15 years of his career as a financial adviser at the firm. Bosway has been CEO since 1999.
City's two other subsidiaries, City Securities Insurance and City Real Estate Advisors, are not included in the deal, terms of which were not disclosed.
Stifel also said the City deal was attractive because the firm's public finance group is a leading underwriter of Indiana municipal bond issues.
For the deal, the firm's lead advisor was Stifel subsidiary Keefe, Bruyette & Woods. Piper Jaffray advised City Financial.