(Bloomberg) -- B. Riley Financial Inc., the embattled broker-dealer and investment firm, reached a deal with funds managed by Oaktree Capital Management LP for a partnership in Great American Holdings.

Under the terms of the transaction, B. Riley will receive about $203 million in cash as well as a stake in a reorganized Great American, to be called Great American NewCo, the companies said in a statement Monday. Shares of B. Riley surged in early New York trading.

“We believe Oaktree’s scale and expertise in alternative investments and their strength as a capital provider, combined with the Great American Group’s leading position as a provider of asset disposition, financial advisory and real estate advisory services, will prove complementary as we join forces to deliver financial products and services to better serve our clients,” B. Riley Chief Executive Officer Bryant Riley said in the statement.

B. Riley’s shares have been devastated as its investments soured in recent years and US authorities probed some of its business deals and disclosures. The Los Angeles-based firm delayed its second-quarter financial statements and missed a deadline to report its annual data, too, before belatedly producing the report. B. Riley breached financial covenants twice last year on one of its smaller loans before negotiating a waiver and amendment with different lenders.

Moelis & Co. served as the exclusive financial adviser to B. Riley, and Sullivan & Cromwell was legal adviser. Wachtell, Lipton, Rosen & Katz served as legal adviser to Oaktree.

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