Ladenburg Thalmann Financial Services (NYSE American:LTS) and Advisor Group entered into a definitive merger agreement to create a wealth management industry leader with nearly 11,500 financial advisors and more than $450-billion in client assets.
Under the accord, Advisor Group would acquire Ladenburg for $3.50 a share. The total enterprise value of the transaction is approximately $1.3-billion, taking into account Ladenburg’s common stock, preferred stock and outstanding debt. The accord was unanimously approved by Ladenburg’s board. The transaction is expected to close in the first half of 2020.
The expanded Advisor Group organization would be led by its current president and CEO, Jamie Price. Ladenburg’s firms would not be merged with Advisor Group’s firms, reflecting both companies’ commitment to a multi-brand network model.
“This is a transaction that maximizes value for our shareholders, while positioning our financial advisors for continued growth and success,” Ladenburg chairman, president and CEO, Richard Lampen, said in a statement. “We have always been impressed with Advisor Group’s platform, offerings and leadership.”
Mr. Price said, “We believe that the investments necessary for competitively differentiated technology, practice management, products and service excellence require a greater level of scale than either of our companies can achieve on a stand-alone basis.”
