RCS Capital, which is filing for bankruptcy this month, owns a majority stake in the maker of straight-through processing (or STP) technology for broker-dealers and registered investment advisors.
According to its Securities and Exchange Commission filing Monday, Docupace executives and MPAP Holdings are in talks with RCAP “regarding potential transactions … including without limitation a potential acquisition of the issuer’s interest.”
In November 2014, RCS Capital – which owns the Cetera Financial Group of independent broker-dealers – acquired a majority stake in the cybersecurity-focused firm from MPAP, which is owned by Docupace President Michael Pinsker.
“Essentially Docupace is strong and viable at the time,” said John DeVincent, Docupace’s executive vice president of marketing, in an interview with ThinkAdvisor. “Sales are going well, and we have an over 99% retention rate for existing clients.”
Management and staff, who number more than 70, are “staying in place” and working on “releasing new products and services,” DeVincent adds.
“Management is working hard to gain independence” following news about RCAP’s bankruptcy filings, a development that is “similar to that of other entities owned by RCS Capital,” he states.