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November 01, 2012 at 09:55 AM
First Allied Holdings said Wednesday that it is buying the Legend Group from Waddell & Reed (WDR). The transaction should close in January, according to Waddell & Reed.
Joel Marks, chairman of First Allied Securities, says the combined entity will include about 1,500 independent advisors with some $30 billion in assets under administration. First Allied now includes about 1,000 independent financial advisors, while Legend has roughly 450 reps, who focus on the 403(b) retirement marketplace.
“This transaction is about rapid growth and revenue creation,” said Marks (left) in an interview with AdvisorOne.
“For First Allied advisors, we can add the Legend opportunities to the retirement space at a more sophisticated, competitive level to increase business,” Marks said. “And for Legend advisors, they have clients with assets that they can now try and capture more of through access to our products and services.”
“For decades, we have prided ourselves on providing premium services and support, and we believe this transaction will further enhance our ability to deliver premier solutions to our advisors and their clients,” said Legend CEO Mark Spinello, in a statement. “Joining First Allied aligns us with a partner company that shares our independent roots and our business goals.”
The purchase price was not disclosed. However, Waddell & Reed—in its third-quarter earnings release on Wednesday—said it agreed to sell Legend on Monday and is taking a noncash charge in the current quarter of $42.4 million related to a write-down of Legend as a result of the sale.
