(Bloomberg) -- Raymond James said it expects to spend more than $400 million to purchase Deutsche Bank's U.S. Private Client Services unit.
The final figure will depend on how many Deutsche Asset & Wealth Management advisors join Raymond James, the St. Petersburg, Fla.-based firm said in a regulatory filing this week. The document offers more detail than Raymond James's previous disclosure in December that it will spend about 1.4 times revenue.
"Based upon the number of Deutsche financial advisors as of Dec. 3, 2015, our total investment including retention incentives provided directly to financial advisors would approximate $420 million," Raymond James said in the document. "At the present time, we have the ability to utilize our cash on-hand as of the closing date to fund the purchase obligation and retention incentives."
The deal will add offices in the Northeast and mid-Atlantic region as CEO Paul Reilly works to expand through acquisitions. Deutsche Bank has been seeking to lower costs and improve the company's return on equity.
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