Southwest Securities Buys O’Connor & Co.

Dallas brokerage Southwest Securities Group Inc. is expanding into California by acquiring O’Connor & Co. Securities, a Newport Beach municipal bond trader. Financial terms were not disclosed.

The purchase is part of Southwest’s strategy of expanding from a regional company to a national firm. The acquisition gives Southwest Securities a greater reach in the municipal bond market, particularly in California, which is increasingly being dominated by larger players.

Privately held O’Connor, which has 23 employees, will operate as O’Connor SWS Securities. The firm was founded in 1983 by principals from the Shearson/American Express municipal bond and public finance departments.

The firm’s stock closed at $19.23, down 72 cents, on the New York Stock Exchange.