Stifel Financial Corp. announced on Monday, June 8th it has made a deal to acquire the U.S. franchise of Barclays’ Wealth and Investment Management, Americas.News that the Barclays was trying to sell its WM division was first reported by Charlie Gasparino of Fox Business Network.

Barclays has close to 180 financial advisors working in the U.S., and they manage more than $56 billion in client assets. Barclays Wealth Management America also has on balance sheet assets of around $1.4 billion and client loans of approximately $1.5 billion in its proprietary clearing firm. Of note, the advisory business is based the Big Apple and 11 other major cities across the U.S.

Stifel will also become the U.S. private wealth distribution partner for a number of Barclays’ equities and also credit new issue securities in the U.S.

The deal is expected to finalize in November 2015, subject of course to regulatory approvals and customary conditions. Legal representation for Stifel was provided by attorneys from Bryan Cave LLP. The terms of the deal have not been made public.

Financial industry analysts note that wealth management is one of the hottest segments in the financial sector today, given regulatory constraints are cutting into profits in other banking segments.

Statement from Stifel

Ronald J. Kruszewski, the Chairman and Chief Exec at Stifel, noted: “We are excited about today’s announcement and our continued growth in our Global Wealth Management business. Barclays’ Wealth franchise in the U.S. is a high-touch, high-service business for sophisticated clients. Combining the depth of Barclays’ franchise and breadth of Stifel’s product offerings, coupled with an entrepreneurial and client-focused culture, will create the premier wealth management platform in the industry today. Importantly, we know that you do not acquire people, but we are excited about partnering with the professionals at Barclays.”

Statement from Barclays

The CEO of Barclays’ Global Wealth and Investment Management, Akshaya Bhargava, commented: “The sale of our U.S. Wealth franchise to Stifel represents a good outcome for Barclays and for our clients. We are pleased to have been able to find in Stifel a buyer that is committed to helping the franchise to grow over the long term, and providing for our clients an expanded range of products and services.”

Barclays Sells Wealth and Investment Management Units To Stifel