Another day, another Independent Broker-Dealer (IBD) acquisition, but this time, it’s not Nicholas Schorsch and RCS Capital Corporation aka RCAP.
Miami-based Ladenburg Thalmann Financial Services, Inc. (Ladenburg) announced its intent to acquire KMS Financial Services, Inc. (“KMS”) an IBD with 325 financial advisors, $14 billion in assets under management, and approximately $84 million in annual revenues for the 12 months ending June 30, 2014.
Ladenburg, a publicly-traded diversified financial services company, includes an array of offerings such as investment banking, asset management, and independent brokerage & advisory services.
The Seattle-based KMS was founded in 1971 and fits nicely into Ladenburg’s plan of expanding nationally, providing it a presence in the Pacific Northwest.
This acquisition comes weeks after one of Ladenburg’s wholly owned subsidiaries, Securities America, announced its intent to purchase another IBD, Sunset Financial Inc.
“We have been impressed by Ladenburg’s record of acquiring independent brokerage and advisory firms with distinct cultures and helping them pool their collective strengths to capitalize on growth opportunities,” said Mark Hamby, Chairman and CEO of KMS. “Joining Ladenburg’s alliance of firms points to a dynamic future for the culture we’ve developed over KMS’s first 43 years,” he added.
The transaction will strengthen Ladenburg’s market share in the financial industry as well as allow KMS access to a wide range of services and offerings provided by the company.
At the same time, Ladenburg plans to uphold KMS’s business identity allowing the newly-acquired IBD operates as a stand-alone business in Seattle, Washington.
“As a part of the Ladenburg family, KMS will retain its distinct brand while gaining the advantages of access to the differentiated products and services offered to our independent advisors, enabling them to meet evolving client needs, stay competitive and further grow their business,” commented Ladenburg’s President and CEO.
The transaction is expected to close sometime late 2014, pending customary closing conditions and regulatory approvals.
Once the acquisition is complete, Ladenburg will collectively have $110 billion in client assets and 3,500 independent financial advisors through its subsidiary IBD’s which will include Securities America, Triad Advisors, Investacorp and KMS.