First Republic Bank (FRC - Free Report) announced the acquisition of 24.5% stake in Calif.-based Nigro Karlin Segal & Feldstein, LLC. The financial terms of the deal have not been disclosed.
The stake buy by First Republic demonstrates its aim to provide enhanced services to its customers with the purchase of flourishing business management firms such as Nigro Karlin.
Nigro Karlin is a company that caters to a wide base of clients, ranging from the entertainment industry to executives, entrepreneurs and sportspersons.
Having strengthened its foothold over the years, First Republic commands a strong presence in California. With the above-mentioned stake acquisition, the company will expand further with the help of the acquired firm’s brand and proficiency.
With the aim of providing a variety of banking services to its clients, First Republic is enthusiastic in making acquisitions and preparing a platform for growth. Moreover, this stake acquisition is significant in the company’s efforts towards providing quality investment services and advice to clients.
On the other hand, the deal will widen Nigro Karlin’s scope and aid its efforts to provide investment decisions to its clients. First Republic, on the other hand, will take advantage of Nigro Karlin’s business management potential and attractive client base. The acquisitions of such business management companies will help boost First Republic’s top line amid a sluggish macroeconomic environment.
Notably, last year, the company also acquired Luminous Capital Holdings, a Los Angeles-based wealth advisory firm. Acquisitions such as these bode well for the company’s as it will help in driving revenues in the near term.
First Republic currently carries a Zacks Rank #2 (Buy). Other well-performing banks include BofI Holding, Inc. (BOFI - Free Report) , East West Bancorp, Inc. (EWBC - Free Report) and Preferred Bank (PFBC - Free Report) . All of these carry the same Zacks Rank as First Republic.