BOK Financial Corporation
) announced a deal for the acquisition of Houston-based MBM
Advisors, an independent full service retirement and pension plan
investment company. Financial terms of the agreement were not
disclosed. Further, the acquisition is anticipated to be
completed in second-quarter 2014.
The acquisition by BOK Financial demonstrates its aim of
diversifying its revenue opportunities by expanding the fee-based
business. Moreover, the company expects to leverage the
innovative wealth management potential of MBM Advisors across its
geographic footprints. Further, following the acquisition, the
company's assets under management would increase by $1.25
Previously, the company had purchased United Banks of Colorado in
2007 and Colorado State Bank and Trust in 2003. In 2012, BOK
Financial completed the acquisition of Denver-based The Milestone
Group Inc., a wealth management firm. Recently, it also completed
the acquisition of Kansas-based GTRUST Financial Corporation, an
independent trust and asset management company, which added
assets worth $600 million to BOK Financial.
MBM Advisors, acting as registered investment advisor for both
retirement plans and individual clients, was founded in 1966. The
firm fully manages clients' employee retirement and pension plans
including investment advisory services.
Having strengthened its foothold over the years through its local
bank brand, Colorado State Bank and Trust, BOK Financial enjoys a
robust presence in Denver. Therefore, with the acquisition of MBM
Advisors, the company will expand in Houston aided by the
acquired firm's wealth management brand and proficiency.
With the aim of providing a wide array of investment products to
its clients, BOK Financial has become enthusiastic in making
acquisitions and preparing a platform for growth. Moreover, this
acquisition depicts the company's efforts toward providing
quality retirement plan services and investment advices to
Notably, amid the current regulatory environment, there had been
pressure on businesses for providing retirement benefits.
Therefore, expansion in retirement planning services at the
current level will be beneficial for BOK Financial.
On the other hand, the deal widens MBM Advisors' scope and will
help its expansion efforts with the commitment of providing
investment decisions to its clients. Moreover, there will be no
change in the company's current client teams.
Overall, the clients of MBM Advisors will have access to the
additional services and products provided by BOK Financial, while
the latter will take advantage of MBM Advisors' investment
The acquisitions of such asset management companies are welcome
as they play a major role in preserving investor confidence in
the stock. We also believe that BOK Financial's diverse revenue
stream, sturdy capital position and expense control initiatives
augur well for investors.
Capital deployment efforts also bode well and boost investors'
confidence. Nevertheless, a protracted economic recovery and its
exposure to the energy sector and risky assets remain our
BOK Financial currently carries a Zacks Rank #3 (Hold). Some
better-ranked companies in the same sector worth considering
Southside Bancshares Inc.
) with a Zacks Rank #1 (Strong Buy), while
Prosperity Bancshares Inc.
) carry a Zacks Rank #2 (Buy).
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