Affiliates of private investment firm Clayton, Dubilier & Rice (CD&R) have agreed to purchase Focus Financial Partners, a partnership of wealth management firms, in a deal valued at over $7bn.
FOCUS currently provides its partner firms with access to various practices, resources and continuity planning services.
Its partner firms offer wealth management services to diverse individuals, families, employers and institutions.
As part of the new definitive agreement, Focus’ stockholders will get $53 in cash per share.
Besides, funds managed by investment firm Stone Point Capital will retain a part of their investment in Focus and will offer fresh equity financing as part of the new all-cash deal.
With the deal, both CD&R and Stone Point seek to leverage Focus’ competitive position in a multi-trillion dollar market.
The deal, which has received approval from a special committee of Focus’ board, includes a 40-day ‘go-shop’ period that will expire on 8 April this year.
Subject to stockholder approval, regulatory clearances and other customary conditions, the deal is anticipated to be completed by the third quarter of this year.
Once the deal is closed, Focus will no longer operate as a publicly traded company and will run as a private entity.
Focus founder, CEO and chairman Rudy Adolf said: “This transaction represents an important evolution in the resources we will have to invest, enabling us to increase the value we deliver to our partners and their clients.
“Our diverse and growing partnership creates enduring advantages.
“We are uniquely positioned to capitalise on industry trends while offering the expertise and resources that help our partners provide differentiated service to their clients.”
The latest deal comes shortly after Focus announced a deal through which Hotaling Investment Management has agreed to join Focus partner company GYL Financial Synergies.