Ladenburg Thalmann Financial Services Inc. (LTS) agreed to acquire Ameriprise Financial Inc.'s (AMP) Securities America Financial Corp. broker-dealer unit for $150 million in cash, in an effort to increase its market share in the independent advisory space.
The deal, expected to close by the end of the year, will be financed by an affiliate of Phillip Frost, Ladenburg's principal shareholder and chairman. Financial-services provider Ameriprise may also receive future payments if the independent broker-dealer reaches certain financial criteria.
"The acquisition of Securities America is a transformative transaction for Ladenburg, enabling us to immediately bolster our position in the vibrant independent broker-dealer space and provide a platform for future growth," Frost said.
Ladenburg, an investment-banking company, reported earlier this month it swung to second-quarter profit as revenue rose 27%, led by growth in its independent brokerage and advisory services businesses.
Ameriprise said last month its second-quarter profit jumped 19% as revenue and assets under management grew.
Shares of Ladenburg and Ameriprise closed Tuesday at $1.21 and $45.12, respectively. Both were inactive premarket.
-By Melodie Warner, Dow Jones Newswires; 212-416-2283; firstname.lastname@example.org