Wells Fargo to Buy Brokerage Ragen MacKenzie in Stock Deal

Wells Fargo & Co. said Tuesday that it plans to buy brokerage Ragen MacKenzie Group Inc. in a $240-million deal that would boost its array of financial services.

Under the deal, San Francisco-based Wells Fargo said it would issue $18.75 worth of its common stock for each common share of the Seattle-based brokerage. Based on the latest data that show 13 million outstanding shares at the end of June, the price tag is about $243 million.

That represents more than a 6% premium over Ragen MacKenzie’s closing price of $17.63 a share on the New York Stock Exchange on Tuesday. Wells Fargo said the price could change depending on fluctuations in its own stock price.

The addition of Ragen MacKenzie’s sales force would help Wells Fargo boost productivity and revenue, as well as let it offer non-brokerage products to new customers, said Dennis Mooradian, president of Wells Fargo’s private client services.

Ragen MacKenzie serves 68,000 clients from 32 offices in the Pacific Northwest.

Shares in Wells Fargo rose 38 cents to close at $38.88 on the NYSE. The deal was announced after the close of trading.