Under the terms of the transaction, Ladenburg has agreed to be acquired by Advisor Group through a transaction valued at $1.3 billion.
Under terms of the agreement, each outstanding share of Ladenburg's common stock will be converted into a cash payment of $3.50 per share. The total enterprise value of the transaction is approximately $1.3 billion, taking into account Ladenburg's common stock, preferred stock and outstanding debt. According to a press release, the definitive merger agreement and the transactions contemplated were unanimously approved by Ladenburg's Board of Directors.
The transaction, which is subject to customary closing conditions, including the approval of Ladenburg's shareholders and receipt of required regulatory clearances and approvals, is expected to close in the first half of 2020. The resulting combination will have nearly 11,500 financial advisors, and more than $450 billion in client assets.
Following the completion of this transaction, the expanded Advisor Group organization will continue to be led by its current CEO and President, Jamie Price – and when the transaction is completed, Advisor Group's leadership team will include senior executives from both Advisor Group and Ladenburg. However, Ladenburg's firms will not be merged with Advisor Group's firms, “reflecting both companies' commitment to a multi-brand network model.”
Advisor Group's network of firms consists of FSC Securities Corporation, Royal Alliance Associates, SagePoint Financial and Woodbury Financial. Ladenburg's independent advisory and brokerage firms include Securities America, Triad Advisors, Investacorp, KMS Financial Services and Securities Service Network (SSN). Additional Ladenburg subsidiaries include Highland Capital Brokerage, a leading insurance solutions brokerage; Premier Trust, a financial advisor-focused trust services company; and Ladenburg Thalmann & Co., a middle market investment bank. Each of these subsidiaries has played a role in delivering unique, value-add solutions to Ladenburg-affiliated financial advisors.
Advisor Group President and CEO Jamie Price said, "This acquisition brings together the best of two industry leaders, to the benefit of the financial advisors we collectively serve. We believe that the investments necessary for competitively differentiated technology, practice management, products and service excellence require a greater level of scale than either of our companies can achieve on a stand-alone basis. In fact, as our two organizations learned more about each other's platforms, it became obvious that our strengths rounded out each other’s offerings, and combined, we will have one of the most comprehensive and best-in-class platforms for financial advisors in the industry. Equally important, Advisor Group and Ladenburg have a shared commitment to the flexibility of third-party clearing, together with maintaining a ‘small firm feel’ delivered through the distinct management teams and cultures of a multi-brand network model. In today's fast-consolidating marketplace, where advisors fear becoming just another number in the crowd, the more intimate service culture and sense of community that our multi-brand approach offers is increasingly in demand.”
