Advisor Group, a US-based wealth management company, has agreed to acquire Ladenburg Thalmann Financial Services for around $1.3bn.
As per the terms of the deal, the company will acquire Ladenburg for $3.50 per share in cash. The consideration includes assumption of Ladenburg’s outstanding debt.
Headquartered in Florida, Ladenburg provides diversified financial services through its subsidiaries, which includes Ladenburg Thalmann & Co., an investment bank.
Ladenburg’s other subsidiaries include certain independent advisory and brokerage (IAB) firms, a life insurance brokerage firm, and a full-service annuity processing and marketing company.
The Arizona-based Advisor Group is a network of independent financial advisors catering to more than 7,000 advisors and handling $271bn in client assets.
Advisor Group, Ladenburg merger to create a major wealth management firm
The company said that the merger with Ladenburg will create one of the top wealth management firms with close to 11,500 financial advisors and more than $450bn in client assets.
According to Advisor Group, the merger will bring together highly complementary capabilities and talent to deliver improvements in technology, practice management and service for advisors across both the firms.
Advisor Group president and CEO Jamie Price said: “This acquisition brings together the best of two industry leaders, to the benefit of the financial advisors we collectively serve.
“We believe that the investments necessary for competitively differentiated technology, practice management, products and service excellence require a greater level of scale than either of our companies can achieve on a stand-alone basis.”
The company said that Ladenburg’s firms will not be merged with its firms, in order to maintain their shared commitment to multi-brand network model.
Ladenburg Thalmann chairman, president and CEO Richard Lampen said: “Advisor Group’s CEO, Jamie Price, and his management team offer a mature shared services model and a demonstrated ability to innovate and invest in ways that help advisors grow.
“We are confident this transaction will help our advisors accelerate the growth of their businesses, while enabling them to benefit from the highly personalized service experience they have always enjoyed, under a very similar multi-custodial, multi-clearing and multi-brand structure.”
The merger, which is subject to the approval of Ladenburg’s shareholders, regulatory clearances and approvals, and other customary closing conditions, is likely to be wrapped up in the first half of 2020.
