Financial services company Stifel Financial has inked a definitive acquisition agreement with Legg Mason Inc. after it announced expanding its wealth management division.

The announcement made on Wednesday said that Stifel Financial would acquire the investment advisory unit of Legg Mason which oversees more than US$9 billion assets. The financial terms for the acquisition deal were not disclosed as well as the exact timeframe of the deal’s completion.

Like Us on Facebook

After the purchase, Legg Mason Investment Counsel & Trust Co. would be a part of the global wealth management arm of Stifel Financial. Last month, Stifel also agreed to acquire Oriel Securities, a London based stockbroker and investment bank.

Stifel’s move to acquire Legg Mason’s unit comes after the latter tried to position itself for further growth as well as after experiencing pressure from the company’s second largest shareholder, Trian Fund Management LP. The company said that its fourth quarter profit has increased after incurring lower expenses and higher revenue.

Chief executive officer Joseph Sullivan for Legg Mason Inc. has been trying to get the company back on track after a long record of net quarterly withdrawals. Customers had been withdrawing from the company after its past performance issues. Sullivan was appointed to his post in February last year.

Chief Executive Joseph A. Sullivan said on Wednesday that the deal would help Legg Mason to transform its investment lineup toward bigger companies that could be in further control of its global distribution division.

After Sullivan’s appointment as the company’s CEO, smaller businesses were sold in the past year along with new products. In August 2013, the company has also gotten rid of its international equities investment and sold private capital management back to its managers in July.

Meanwhile, Stifel Financial said through a joint statement on Wednesday that the deal has been projected to close by fall this year.

The shares of Legg Mason closed on Tuesday at US$49.19 on the New York Stock Exchange while Stifel closed at US$44.88 on the same day.

TagsStifel Financial, Legg Mason, Oriel Securities, Joseph Sullivan, Legg Mason Investment Counsel & Trust Co