UMB Financial's subsidiary UMB Fund Services is selling its broker-dealer business to ACA Group

From Nasdaq: 2024-05-31 10:47:00

UMB Financial Corporation’s UMBF subsidiary, UMB Fund Services, plans to sell its broker-dealer distribution business to ACA Group. This move will allow UMB Fund Services to enhance core operations and transfer agency businesses. The transaction with ACA is set to close in the final quarter of 2024, adding $48 billion in client assets to ACA.

ACA Group, a governance, risk, and compliance advisor, will expand its distribution team through this acquisition. ACA manages over $2 trillion in assets across multiple fund families. UMB Fund Services clients will benefit from ACA’s advisory support and technology after the transaction, maintaining strong relationships.

The acquisition aligns with UMBF’s growth strategy, following its plan to acquire Heartland Financial for around $2 billion. UMBF aims to diversify its business, expand its consumer and small business capabilities, and gain a presence in the Midwest and Southwest markets. UMBF’s shares have seen a 37.5% increase over the past year compared to industry growth of 27.6%.

UMB Financial Corporation currently holds a Zacks Rank #1 (Strong Buy). Other notable finance stocks include First Community Bankshares, Inc. (FCBC) and Origin Bancorp, Inc. (OBK), with positive earnings estimates revisions and Zacks Rank #1 designations, showcasing strong potential for investors.

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Read more at Nasdaq: UMB Financial’s (UMBF) Arm to Sell Broker-Dealer Business