Siebert Financial Corp. to Acquire StockCross Financial Services, Inc.
July 17 2019 - 9:20AM
Business Wire
- Acquisition of StockCross, a clearing broker-dealer, will add
market-making, equity stock plan services, IRA custodianship, and
securities lending business lines to Siebert
- Upon closing, Siebert will obtain an additional $1 billion in
customer assets, three retail branches and 45 employees
- Transaction results in clear path to economies of scale and
revenue synergies
Siebert Financial Corp. (NASDAQ:SIEB) (“Siebert”)
announced today that it entered into a binding letter of intent to
acquire the remaining eighty-five percent (85%) interest in
StockCross Financial Services, Inc. (“StockCross”), a clearing
broker-dealer.
In Q1 of 2019, Siebert purchased a 15% stake in StockCross and
the current transaction will give Siebert 100% ownership of
StockCross. Upon the closing of the purchase, which is subject to
regulatory approval, Siebert intends to merge StockCross into
Siebert’s current broker-dealer subsidiary, Muriel Siebert &
Co., Inc.
Gloria E. Gebbia, controlling shareholder and board member of
Siebert, said, “We are very pleased to reach this agreement with
StockCross and move forward with 100% ownership of this outstanding
organization. This transaction represents a tremendous opportunity
to accelerate our growth and provide even greater value to clients,
shareholders and employees.”
The transaction will add market-making, equity stock plan
services, IRA custodianship, and securities lending to Siebert’s
current business lines. In addition, Siebert will gain $1 billion
in customer assets, three retail branches, and an opportunity to
drive significant economies of scale as well as revenue synergies.
The combined service personnel and depth of management will enable
Siebert to reach additional customer touchpoints and enhance the
client experience.
About Siebert Financial Corp.
Siebert Financial Corp. is a holding company that conducts its
retail discount brokerage business through its wholly-owned
subsidiary, Muriel Siebert & Co., Inc., which became a member
of the New York Stock Exchange (“NYSE”) in 1967 when Ms. Siebert
became the first woman to own a seat on the NYSE and the first to
head one of its member firms. The company conducts its investment
advisory business through its wholly-owned subsidiary, Siebert
AdvisorNXT, Inc., a registered investment advisor, and its
insurance business through its wholly-owned subsidiary, Park
Wilshire Companies Inc., a licensed insurance agency. Siebert’s
fourth wholly-owned subsidiary, KCA Technologies, LLC, is a
developer of robo-advisory technology. Siebert is headquartered in
New York City with 13 retail branches throughout the continental
U.S. Siebert is under common control with StockCross Financial
Services, Inc. More information is available at
www.siebertnet.com.
About StockCross Financial Services, Inc.
StockCross Financial Services, Inc. is one of the largest
privately-owned brokerage firms in the nation. Established in 1971,
it has spent many years providing financial guidance and excellent
customer service to its clients. Branch offices are located
throughout the nation and are staffed with knowledgeable and
experienced representatives. Online investment services and phone
support offer clients around the world instant and current
information on their accounts. StockCross consistently delivers on
its full scope of offerings including market making, fixed-income
products, online or broker-assisted equity trading, securities
lending, and equity stock plan services across the globe through
advanced online trading capabilities. StockCross is a clearing
broker-dealer and IRA custodian providing clearing and custody
services for its clients and Muriel Siebert & Co., Inc.
StockCross is headquartered in Beverly Hills. Member FINRA | SIPC |
EST. 1971.
Notice to Investors
This communication is provided for informational purposes only
and is neither an offer to sell nor a solicitation of an offer to
buy any securities in the U.S. or elsewhere.
Cautionary Note Regarding Forward-Looking Statements
Statements in this press release that are not statements of
historical or current fact constitute “forward-looking statements”
within the meaning of the Private Securities Litigation Reform Act
of 1995. Such “forward-looking statements” involve risks and
uncertainties and known and unknown factors that could cause the
actual results of Siebert Financial Corp. (the “Company”) to be
materially different from historical results or from any future
results expressed or implied by such “forward-looking statements”,
including without limitation: changes in general economic and
market conditions; changes and prospects for change in interest
rates; fluctuations in volume and price of securities; changes in
demand for brokerage services; competition within and without the
brokerage business, including the offer of broader services;
competition from electronic discount brokerage firms offering
greater discounts on commissions than the Company; the prevalence
of a flat fee environment; limited trading opportunities; the
method of placing trades by the Company’s customers; computer and
telephone system failures; the level of spending by the Company on
advertising and promotion; trading errors and the possibility of
losses from customer non-payment amounts due; other increases in
expenses and changes in net capital or other regulatory
requirements. As a result of these and other factors, the Company
may experience material fluctuations in its operating results on a
quarterly or annual basis, which could materially and adversely
affect its business, financial condition, operating results, and
stock price, as well as other risks detailed in the Company’s
filings with the Securities and Exchange Commission (“SEC”).
Accordingly, investors are cautioned not to place undue reliance on
any such “forward-looking statements.” The Company undertakes no
obligation to update the information contained herein or to
publicly announce the result of any revisions to such
“forward-looking statements” to reflect future events or
developments. An investment in the Company involves various risks,
including those mentioned above and those which are detailed from
time to time in the Company’s SEC filings, copies of which may be
obtained from the Company or through the SEC’s website.
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version on businesswire.com: https://www.businesswire.com/news/home/20190717005249/en/
FOR: SIEBERT FINANCIAL CORP. Investors and Media Melissa
Sheer Kent Place Communications melissa@kentplacellc.com
917-690-2199
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