Investment bank Bell Financial Group will take over Southern Cross Equities in a complex cash and scrip bid to form what the parties describe as Australia's largest independent broking house.Total consideration will be equally split between cash and scrip, payable in four instalments over three years, based on a Bell Financial share price of $1.25.Vesting conditions on the second, third and fourth payments are subject to performance benchmarks being achieved.This makes its hard to pin down the value of the bid, though Bell described the "total potential acquisition price at $150 million, based on 2008 normalised financial results for Southern Cross", and which works out as a price to earnings multiple of 7.7 times.Bell Financial is expected to finance the cash component through existing and future cash flows.Bell Financial net profit after tax nosedived 46 per cent to $9 million in the unaudited financials for the six months to June 30, compared to the corresponding period.The profit was hit by a 66 per cent decrease in corporate fee income to $6.4 million, and a 15 per cent fall in brokerage revenue to $60 million.Due diligence will take up to eight weeks, with mid September flagged as an anticipated merger completion date. Investors applauded the move, pushing the share price up 21 per cent to $1.12 on moderate volume - which is still well below the yearly $2.49 peak in January 2008 before the market turned with a vengeance, but comfortably higher than the 85 cent lows.