In further consolidation of the wealth management space, Cetera Financial Group has entered into a definitive agreement to acquire the retail wealth business of the Securian Financial Group.
Under the agreement, Cetera will acquire certain assets—including Securian Financial's broker-dealer, registered investment advisor and insurance agency—as well as the equity of Securian Trust Company, NA, according to the announcement.
As a result, more than 1,000 financial professionals across 30 independent firms representing $47.4 billion in assets under administration (AUA) and $24.8 billion in assets under management (AUM) will be integrated as a distinct community, branded as Cetera Wealth Management Group, within the Cetera Advisor Networks community.
The transaction also includes a broad strategic partnership agreement aimed at aligning the interests of the two organizations, including an arrangement whereby Securian Financial will distribute its individual life and annuity products through Cetera's affiliated financial professionals. In addition, Securian Trust Company will become a standalone Cetera entity and will continue to serve its existing advisors and clients, as well as expand to serve Cetera's other businesses.
“We have long admired Securian Financial's commitment to their managing partners, their powerful independent operating model and dedicated community of independent financial professionals,” Cetera CEO Adam Antoniades said in a statement. “Our Wealth Hub, which uniquely brings choice and flexibility to our financial professionals as well as best-in-class growth capabilities, is complementary and synergistic to Securian Financial's operating model, and we envision untapped growth potential for the independent financial professionals joining the Cetera network.”
“This transaction allows Securian Financial to increase our strategic focus and accelerate growth in our priority markets, while at the same time continue our commitment to the retail wealth business through our strategic partnership with Cetera,” adds Chris Hilger, Securian Financial's chairman, president and CEO. “Most importantly, Cetera is a great cultural fit, valuing our unique operating model and commitment to accelerating growth for financial professionals.”
The transaction is expected to close in the third quarter of 2023, pending regulatory approval. Terms of the deal were not disclosed.
Morgan Stanley and UBS Investment Bank are acting as financial advisors on behalf of Cetera, while Willkie Farr & Gallagher LLP is acting as legal advisor. For Securian, Goldman Sachs is acting as financial advisor and Eversheds Sutherland is acting as legal advisor.