Raymond James closed its acquisition of the Morgan Keegan brokerage unit from Regions Financial on Monday in a transaction totaling about $1.2 billion in cash.
The closing price was above the $930 million purchase price Raymond James announced in January due to the delay of a $250 million cash dividend payment by Morgan Keegan. That dividend payment was originally slated to be paid by Morgan Keegan to Regions Financial before the close of the transaction. The delay of that dividend payment has resulted in a larger book value for Morgan Keegan. Following the transaction, Morgan Keegan will pay the $250 million cash dividend to Raymond James instead.
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