Financial services firm Ladenburg Thalmann Financial Services has struck a definitive deal to acquire Securities Service Network (SSN), a Knoxville, Tennessee-based independent broker dealer.
Under the contract, Ladenburg will have to pay an amount of $45m, which will include a $25m cash payment and $20m of four-year notes.
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SSN, founded in 1983, comprises about 450 financial advisors, registered representatives and insurance agents across the nation.
The company has client assets worth about $13bn and generated revenues worth nearly $115m for the 12 months ended June 30, 2014.
Following completion of the acquisition, SSN will continue to run as a stand-alone business and from its current headquarters based in Knoxville.
Apart from this acquisition, there are also other pending acquisitions of Ladenburg which include KMS Financial Services and assets of Sunset Financial Services.
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These when combined will expand Ladenburg’s network of independent brokerage and advisory firms to about 4,000 financial advisors with $125 bn of client assets, while its annual revenues will reach almost $1.1bn.
Richard Lampen, president and CEO of Ladenburg Thalmann, said: "Like all members of the Ladenburg Thalmann family, SSN will keep the caring, relationship-oriented culture that has defined it while obtaining access to a wide variety of products and services to remain competitive, meet the changing needs of clients and grow over the long term."
The deal is slated to reach closure by the end of this year or early 2015, and does not require approval from Ladenburg shareholders.
However, it is subject to approval from regulatory authorities and other customary closing conditions.
Wilkinson, SSN’s president and CEO, commented: "We are committed to the welfare of each and every one of our clients because we consider them friends and neighbors. Ladenburg enables us to maintain this philosophy while providing the products, services and technology we need to grow. Our existing culture, where entrepreneurial advisors can thrive in the business of helping clients achieve their goals, has led to national recognition and many client relationships that extend to multiple generations. We are proud to have reached this level of maturity, and look forward to continuing along this path with tools and support from Ladenburg."
