Ladenburg Thalmann Financial Services Inc. (LTS) agreed to
acquire Ameriprise Financial Inc.'s (AMP) Securities America
Financial Corp. broker-dealer unit for $150 million in cash, in an
effort to increase its market share in the independent advisory
space.
The deal, expected to close by the end of the year, will be
financed by an affiliate of Phillip Frost, Ladenburg's principal
shareholder and chairman. Financial-services provider Ameriprise
may also receive future payments if the independent broker-dealer
reaches certain financial criteria.
"The acquisition of Securities America is a transformative
transaction for Ladenburg, enabling us to immediately bolster our
position in the vibrant independent broker-dealer space and provide
a platform for future growth," Frost said.
Ladenburg, an investment-banking company, reported earlier this
month it swung to second-quarter profit as revenue rose 27%, led by
growth in its independent brokerage and advisory services
businesses.
Ameriprise said last month its second-quarter profit jumped 19%
as revenue and assets under management grew.
Shares of Ladenburg and Ameriprise closed Tuesday at $1.21 and
$45.12, respectively. Both were inactive premarket.
-By Melodie Warner, Dow Jones Newswires; 212-416-2283; melodie.warner@dowjones.com