RCS Capital Corporation (RCAP) closed yesterday on the acquisition of Summit Financial Group, Inc. (Summit) according to a filing. Each share of Summit stock, which previously traded on the OTC under the symbol SFNS, was converted into the right to receive $1.589 in cash and RCAP’s Class A common stock considerations.
Summit, an independent broker-dealer based out of Boca Raton, Florida, will add about 324 financial advisors, primarily based in the southeast, to RCAP’s existing network of independent financial advisors, most of which, are a result of the acquisition of the Cetera network of broker-dealers.
The Summit advisors are located in 238 different branches, collectively manage $9.4 billion in assets, and work with approximately 50,000 clients.
“We are pleased to have completed the acquisition of Summit and welcome the company as the newest member of our retail advice platform,” said Lawrence Roth, Chief Executive Officer of RCAP’s retail advice platform, Cetera Financial Group. “Summit’s proven record of success in providing a broad range of securities brokerage and advisory services to retail investors will directly complement our growing retail advice business, while strengthening RCAP’s broader portfolio of best-in-class investment solutions for the mass affluent retail investor. As we continue to redefine the conventional retail investing process, Summit, as an important member of our retail advice platform, will allow us to significantly expand our products and services to those investors seeking durable income oriented, interest rate sensitive products, which also seek to furnish capital preservation.”
Marshall Leeds, Chief Executive Officer of Summit, added, “We are excited to join RCAP and the Cetera Financial Group family of broker-dealers and for the opportunities that this relationship presents to our financial advisors and their clients.”