Securities America has announced an agreement to acquire certain assets of a Kansas City, Mo.-based full-service broker-dealer and RIA.
The deal with Sunset Financial Services will bring 268 advisors and $2.4 billion in client assets from Kansas City Life Insurance to the independent broker-dealer.
Sunset currently brings in approximately $18 million in annual revenue.
"What we're acquiring is the advisors," says Securities America CEO Jim Nagengast. While the team will become an OSJ of Securities America, the insurance company will retain the full-service broker-dealer for its insurance underwriting purposes, Nagengast says.
"We will take over the technology, all the processing, all of the back-office responsibilities and continue to help them grow their business," he adds.
This is the largest deal in about five years for Securities America, a subsidiary of Ladenburg Thalmann Financial Services. In 2009, the independent broker-dealer kicked off an initiative to attract more "super branches" with its acquisition of 260 advisors from Brecek & Young Associates. In a similar deal earlier this month, Securities America acquired Dalton Strategic Investment Services as a super OSJ on July 10.
"This agreement caps a two-year broker-dealer search to find the best match for our customers and representatives," said Walter Bixby, executive vice president and vice chairman of the board at Kansas City Life, in a statement announcing the deal.
Nagengast says he expects minimal disruption while transitioning Sunset Financial's advisors to the Securities America platform. The transition is expected to be complete by the end of the fourth quarter.
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