Regions Financial sells Morgan Keegan to Raymond James Financial

Regions Financial Corp. is selling Morgan Keegan & Company Inc. and related affiliates to Raymond James Financial Inc. for $930 million. As part of the transaction, Morgan Keegan also will pay Regions a dividend of $250 million before closing, pending regulatory approval, resulting in total proceeds of $1.18 billion. The deal is expected to close during the first quarter.

“This agreement validates our belief in the value of the Morgan Keegan franchise as a leading brokerage and investment banking firm based in the Southeast,” said Regions President and CEO Grayson Hall. “I am very pleased that we were able to reach an agreement that benefits our shareholders and helps us focus on our core banking business while also allowing us to continue providing a full range of products and services seamlessly to our customers.”