Cetera® has entered into a definitive agreement to purchase select assets of Foresters Financial’s U.S. broker dealer and advisory business.
The transaction, subject to regulatory approval, is expected to close late in the second quarter of 2019. While financial terms of the transaction will not be publicly disclosed, as part of the asset purchase agreement, Cetera will be permitted to invite Foresters Financial’s approximately 500 independent financial advisors to join Cetera’s self-clearing platform, according to a press release.
As part of the transaction, 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. Cetera is establishing a dedicated service and support team to conduct a seamless transition as a benefit to the newly affiliated Cetera advisors.