Securities America announced Monday a definitive agreement to acquire certain assets of Sunset Financial Services Inc., a full-service broker-dealer, from Kansas City Life Insurance Co. (KCLI).
The deal is expected to add 268 registered representatives in 48 states plus the District of Columbia, approximately $18 million in annual gross revenue and $2.4 billion in client assets to Securities America. It is expected to close by year end.
“This agreement caps a two-year broker-dealer search to find the best match for our customers and representatives," Walter E. Bixby, Kansas City Life executive vice president and vice chairman of the board, said in a statement. "Securities America is well equipped to provide more robust technology, more diverse products and enhanced practice management.”
KCL Service Co. will operate as a branch of Securities America for these representatives. After the deal, Sunset Financial Services will continue to assist Kansas City Life in issuing and promoting its variable insurance products.
Securities America has stated that it “has partnered with several smaller broker-dealers in recent years to help them become super branches with the company.”
Earlier this month, Securities America, part of Ladenburg Thalmann (LTS), announced its acquisition of Dalton Strategic Investment Services, an Indiana broker-dealer with 60 advisors in 18 states, $950 million in client assets and about $7 million in yearly fees and commissions.
At that time, Jim Nagengast, CEO and president of Securities America, had said the independent broker-dealer was looking for more deals.
“Through our extensive experience in collaborating with small firms, Securities America has developed meticulous processes and automation specifically for creating a smooth transition experience for the advisors,” Nagengast said, in a statement earlier this month. “Our conversations with smaller BDs have increased, and we are looking for additional opportunities in this space.”
In 2013, the independent broker-dealer added 30 advisors from Eagle One Investments in Washington, Iowa. The year before, it transitioned 140 advisors from Investors Security Co. Inc. The company added 45 advisors from Equitas and 40 from ePlanning to its operations in 2010, while Brecek & Young Associates, with 260 advisors, came on board in 2009.
According to Investment Advisor’s 2014 Broker-Dealer Reference Guide, Securities America had sales of $475 million last year. Its reps have average yearly fees and commissions of $271,400.
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