B. Riley Financial, Inc. (NASDAQ: RILY) has disclosed the purchase deal of National Holdings Corporation (NASDAQ: NHLD). RILY said that it has finally decided to buy National Holdings, an investment banking, and assets management enterprise. Both the firms have signed an agreement, after which RILY bought the NHLD for $3.25 a share in cash.
B. Riley Financial is currently holding a 45% share of the common stock of the firm. This deal is believed to be an opportunity for both the firms as this deal would increase the capital markets and wealth management businesses and investment banking of both the firms. It has also been disclosed by both the corporations that the board of directors of both the firms has endorsed this deal.
B. Riley Financial, Inc. (NASDAQ: RILY) went down 0.35% during the trading session of Friday. In the past 52-weeks of trading, this firm's share wavered between the low range of $12.92 to a high range of $46.57. Its shares rocketed 253.98% from its 52-weeks low and plunged -1.83% from its 52-weeks high.
Turning our focus towards its profitability, its return on investment, equity, and assets is 6.50%, 14.80%, and 2.10%, respectively. Its Gross Margin is 89.40% and Profit Margin is 7.20%. B. Riley Financial, Inc. (NASDAQ: RILY) market cap is $1.17 billion at the time of writing.
Under the terms and conditions of the deal, RILY will soon start the cash tender offer to acquire the remaining share of NHLD it has not acquired yet. An independent committee of National’s Board of directors has also endorsed this deal and they have advised the shareholders of NHLD that they bid their shares into the tender offer.
The deal is not dependent on any of the financial conditions and it is anticipated that both the firms will finalize the deal during the first quarter of 2021. This merger will benefit both the firms and will expand the businesses of both corporations. Up till now both the firms have benefited each other through mutual coordination and partnership and are hoping to do so in the future as well.