In what could be further evidence of consolidation in the independent broker/dealer space–or of the enhanced value that winning Investment Advisor’s Broker/Dealer of the Year brings to honorees–another mid-sized independent B/D has been acquired by one of its larger brethren.
Securian Financial Group, the St. Paul, Minnesota-based insurance and financial services firm, said September 10 that it had signed a definitive agreement to acquire independent broker/dealer Capital Financial Group/H. Beck. When combined with Securian’s broker/dealer, Securian Financial Services, the combined B/D will have about 2,000 representatives operating in all 50 states. In its announcement, Securian said CFG’s senior management, which would include president and CEO Eric Meyers, will “remain in place,” that it will “continue to operate independently in Maryland,” and that it did not anticipate making any layoffs at either firm. Subject to regulatory approval, the acquisition is scheduled to close by year end. Other details of the acquisition were not disclosed.
In Investment Advisor’s 2008 broker/dealer survey, with data as of April 1, CFG/H. Beck reported 2007 revenue of $77.3 million produced by 680 reps. At the same time, Securian reported 2007 revenue of $118.5 million produced by 1,170 reps.