Securities firm is expected to acquire M.L. Stern

A Dallas-based securities firm is expected to announce today that it has agreed to acquire Beverly Hills-based investment firm M.L. Stern & Co. from a unit of Pacific Life Insurance Co.

Terms of the proposed acquisition by publicly traded SWS Group Inc. weren’t disclosed.

Stern has 112 financial advisors serving wealthy clients. The firm also is known for advising municipal governments on their financing.

In addition to its Beverly Hills headquarters, the firm has offices in Las Vegas, San Diego, Sacramento, Carmel and Rancho Bernardo, Calif.

The acquisition would include Stern’s Tower Asset Management, a fee-based investment advisory firm that manages individual stock, bond and mutual fund portfolios.

Stern has about $4.5 billion in customer assets under management, including $450 million managed by Tower.

The firm was founded in 1980. In 1999, a Pacific Life unit bought 80% of Stern. The insurer acquired the remaining 20% in 2003.

The acquisition by SWS is expected to be completed by the end of March.

SWS subsidiaries include brokerage firm Southwest Securities Inc. and a community bank in the Dallas-Fort Worth area.