US-based fintech company FDCTech has signed a letter of intent (LOI) to buy a 80% equity stake in CIM Securities for an undisclosed sum.

CIM Securities is a broker-dealer and a member of both Financial Industry Regulatory Authority (FINRA) and Securities Investor Protection Corporation (SIPC).

In August 2002, the US Securities Exchange Commission granted regulatory approval to CIM.

With licence to carry out business in 49 US states and territories, the company earned revenue of $2.51m in the last fiscal year. Majority of the revenue came from investment banking sector and advisory fees.

Currently, CIM Securities provides private placement dealings in which issuers directly buy shares of or other investments in a specific company.

The company also delivers brokerage account services through a clearing entity, Hilltop Securities.

According to FDCTech, the latest deal is in line with its policy to expand through merger and acquisition (M&A).

The deal is also expected to help FDCTech to add a financial services company into its portfolio in the US.

Subject to regulatory approvals, the transaction is anticipated to be completed in the fourth quarter of this year.

In December last year, FDCTech announced that it had signed a deal to purchase a 51% equity interest in independent specialist dealer group AD Advisory Services (ADS) in a stock-for-stock transaction.

With the acquisition, FDCTech aims to enter the Australian wealth management market with access to the Australian Financial Services License (AFSL).