UPDATE 1-Raymond James buys Lane Berry, expands business svcs

* Acquires boutique bank Lane, Berry

* Expands business services sector with deal

* Terms not disclosed

* Adds 21 professionals with Lane acquisition

NEW YORK, May 26 (Reuters) - Raymond James Financial Inc (RJF.N) said it acquired Lane, Berry & Co, a boutique bank focused on the business services industry, to beef up its investment banking business.

With the acquisition, Raymond James will expand its coverage of the business services sector with particular focus on financial services technology and payment and transaction processing, the company said in a statement.

Raymond James, which runs one of the largest U.S. brokerages, adds Lane Berry's 21 professionals to its investment banking group, the company said. The terms of the deal were not disclosed.

As part of the deal, Lane Berry's Chief Executive Frederick Lane joined Raymond James as vice chairman of investment banking, while Lane Berry's President Robert Berry joined Raymond James as managing director and co-head of the company's merger and acquisition practice.

Lane Berry, founded in 2002, is a middle-market investment banking and advisory firm with offices in Boston and Denver. (Reporting by Tenzin Pema; Editing by Brian Moss)