London-based financial services firm European Wealth Group is purchasing independent broker-dealer Newbridge Securities Corporation and its affiliated registered investment adviser Newbridge Financial Services Group for an undisclosed sum. The acquisition is expected to close in late 2017 or early 2018, subject to FINRA approval.
EWG provides financial planning, investment management, broker-dealer, and investment banking services. The acquisition will double EWG’s assets under management to approximately $4 billion and will allow access to every state in the U.S., excluding Maine. EWG plans rebrand as Kingswood, subject to shareholder approval.
Headquartered in Boca Raton, Florida, Newbridge has a network of approximately 220 professional advisors and associates, 12,000 clients, and approximately $1.7 billion in assets under management. In 2016, Newbridge reported revenues of $28 million and profit before tax of $(0.5) million. The company had net cash of $0.7 million and total gross assets of $2.5 million.
“We are ambitious to grow both organically and dynamically by acquisition. This is our first key step to deliver a profitable and differentiated strategy in the financial services arena,” said EWG CEO Marianne Ismail. “We anticipate following this deal with further exciting accretive acquisitions in the future, strengthening our position in major international markets, product offering and AUM.”
She added, “Newbridge presents a unique opportunity to invest in an established, well-positioned and nationally represented company. It significantly increases our global footprint by gaining immediate access to the largest wealth management market in the world, which we intend to build and scale substantially.
Following the closing of this transaction, there will be no change in the US management team, and the business will continue to be managed by Leonard Sokolow, who will assume the role of CEO of the Newbridge business, and Thomas Casolaro, who will serve as its president.