Cetera, a network of independent broker-dealer firms, has entered into a definitive agreement to purchase select assets of Foresters Financial’s U.S. broker dealer and advisory business. The transaction expected to close late in the second quarter of 2019. Financial terms were not publicly disclosed.
As part of the asset purchase agreement, Cetera will be permitted to invite Foresters’ approximately 500 independent financial advisors to join its self-clearing platform.
Cetera will also have the option to assume the leases of the 40-plus branch office locations throughout the United States, as well as make offers to a substantial portion of the employees of the brokerage and advisory business, who will be expected to continue to play key roles in the growth of the business and support of its advisors.
The business will operate as a distinct division of Cetera, with a separate and distinct management team led by Sean Casey, reporting to LeAnn Rummel, president of Cetera Investment Services.
“When Foresters Financial decided to continue to focus and invest in its core life insurance business, it sought a firm that it felt would best offer its national network of diverse and client-centric financial advisors a path for continued growth,” said Rummel. “Cetera was the right firm, for a number of reasons, including the breadth of our product solutions and proven track record of helping advisors grow their businesses.”
Cetera was advised on these transactions by Deutsche Bank Securities Inc.
Cetera Financial Group Cetera is the second-largest independent financial advisor network in the nation by number of advisors, as well as a leading provider of retail services to the investment programs of banks and credit unions. Its network includes Cetera Advisors, Cetera Advisor Networks, Cetera Investment Services (marketed as Cetera Financial Institutions), Cetera Financial Specialists, First Allied Securities and Summit Brokerage Services.