Securities America to Acquire Assets of Foothill Securities of Santa Clara, Calif.
August 19 2016 - 7:00AM
Business Wire
Deal will add 210 advisors with $5.14
billion in client assets and $38 million in revenue
Securities America, a wholly owned subsidiary of Ladenburg
Thalmann Financial Services, Inc. (NYSE MKT: LTS, LTS PrA),
announced today a definitive agreement to acquire certain assets of
Foothill Securities, Inc., an advisor-owned, independent
broker-dealer headquartered in Santa Clara, Calif.
Founded in the heart of Silicon Valley in 1962, Foothill
Securities currently services the needs of 210 advisors in 12
states with $5.14 billion in client assets and $38 million in
revenue.
Foothill Securities President and CEO Steve Chipman said the
firm has been actively seeking a larger firm to acquire its assets
for several months. The move will provide better support to
existing advisors and enhanced offerings to attract new
advisors.
“We selected Securities America, one of the country’s largest
independent broker-dealers, because it will offer our advisors
additional compliance support, better technology, broader asset
management resources and practice management programs for the full
practice life cycle,” Chipman said. “At the same time, advisors
will still receive the close-knit culture and personal attention of
our branch support team. Securities America, like Foothill
Securities, understands the importance of the advisor’s role in
helping clients achieve their financial goals.”
Increasing compliance costs, particularly in light of the new
Department of Labor Fiduciary Rule, reinforced the decision to find
a buyer, Chipman said. He and the firm’s leadership team chose
Securities America because of its similar philosophy of putting
advisors’ needs first, so they can better serve their clients.
Securities America’s CEO and President Jim Nagengast agreed
Securities America’s culture makes it an ideal fit for Foothill’s
advisors and staff.
“We’re pleased Foothill Securities chose to partner with
Securities America on this important decision,” Nagengast said.
“Foothill’s advisors can be confident they’re joining a
broker-dealer with the right people and resources to help them
promote and grow their practices.”
In the past eight years, Securities America has developed strong
expertise in transitioning large groups of advisors. With the
Foothill acquisition, the company will have completed eight deals,
totaling more than 900 advisors with approximately $114 million in
revenue and over $12.6 billion in client assets.
"We have a very sophisticated and detailed process to
efficiently work through all the details and requirements
associated with this type of transaction," said Gregg Johnson,
Securities America executive vice president of branch office
development and acquisitions. “Our project list includes more than
750 tasks across 12 departments, led by a cross-departmental team
of more than 25 employees. No other independent broker-dealer, to
our knowledge, has done as many of these transactions in the past
three years as Securities America, and we continue to expand and
refine our expertise in this market."
The transaction is subject to customary closing conditions,
including regulatory approval.
About Securities America
Securities America is one of the nation’s largest independent
broker-dealers with more than 2,000 independent advisors and $58
billion in client assets.
Securities offered through Securities America, Inc., member
FINRA/SIPC. Advisory services offered through Securities America
Advisors, Inc., an SEC Registered Investment Advisory Firm.
Securities America is not affiliated with any other entity
named.
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version on businesswire.com: http://www.businesswire.com/news/home/20160819005046/en/
Securities AmericaNatalie Hadley402-399-9111 ext.
4606800-747-6111 ext. 4606nhadley@saionline.com
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