Ladenburg Thalmann Financial Services has agreed to acquire Securities America Financial Corporation and its subsidiaries from Ameriprise Financial.
Securities America has approximately 1,700 financial professionals nationwide with approximately $50 bn in client assets, including more than $15bn in assets under management at its investment advisor subsidiaries.
As per the terms of the transaction, Ladenburg will pay $150m in cash in initial consideration at closing with the potential for additional cash payments in the event that certain performance targets are met by Securities America during 2012 and 2013.
Following completion of the transaction, Jim Nagengast, president and CEO of Securities America, and Securities America’s senior management team will continue to operate Securities America as a stand-alone business based from its current headquarters in La Vista, Nebraska.
Ladenburg president and CEO Richard Lampen said with the addition of Securities America and its best in breed independent broker-dealer platform, Ladenburg will significantly increase its market share in the independent advisory space and solidify its position as a leading independent broker-dealer.
The transaction is expected to close by the end of 2011. It will be financed by an affiliate of Phillip Frost, Ladenburg’s principal shareholder and chairman of the board.