Houston, TX-based Sterling Bancshares Inc. has agreed o acquire MBM Advisors Inc., a Houston, TX-based investment advisor with over $700 million in assets under management.

Under the terms of the agreement, all outstanding stock of MBM will be converted into the right to receive $6 million in cash upfront, $3 million in guaranteed cash payments over four years and the potential to receive another $4 million in cash over the next four years if MBM achieves certain earnings thresholds.

The merger has been approved by the Boards of Directors of both companies and is expected to close during the second quarter of 2007.  The transaction is subject to certain conditions, including the approval by customary regulatory agencies.

The Carson Medlin Company served as financial advisor to Sterling Bancshares.