As it continues to expand the reach of its Advice-Centric Experience, Cetera has entered into a definitive agreement to purchase select assets of Foresters Financial's U.S. broker-dealer and advisory business.
The transaction, which is subject to regulatory approval, is expected to close late in the second quarter of 2019.
Financial terms of the transaction will not be publicly disclosed.
As part of the asset purchase agreement, Cetera will be permitted to invite Foresters Financial's approximately 500 independent financial advisors to join Cetera's self-clearing platform.
As part of the transaction, Cetera will also have the option to assume the leases of the 40-plus branch office locations throughout the U.S., as well as make offers to a substantial portion of the employees of the brokerage and advisory business, who will be expected to continue to play key roles in the growth of the business and support of its advisors.
The business will operate as a distinct division of Cetera, with a separate and distinct management team led by Sean Casey, reporting to LeAnn Rummel, President of Cetera Investment Services.
Cetera is establishing a dedicated service and support team to conduct a seamless transition as a benefit to the newly affiliated Cetera advisors.
LeAnn Rummel said, "When Foresters Financial decided to continue to focus and invest in its core life insurance business, it sought a firm that it felt would best offer its national network of diverse and client-centric financial advisors a path for continued growth. Cetera was the right firm, for a number of reasons, including the breadth of our product solutions and proven track record of helping advisors grow their businesses. The advisors who join Cetera will also benefit from our business consulting services and leading technology like AdviceWorks and My Advice Architect, which helps advisors manage and grow their advisory businesses. We also look forward to offering these advisors access to our expertise and automation of our fixed and variable annuity and life insurance shelf."
"We extend a warm welcome to all the new employees and advisors joining the Cetera family," said Adam Antoniades, President of Cetera Financial Group. "The Foresters advisors already have a long-standing and growing client base with high retention rates. Cetera offers them a proven path for growth, having a successful track record in operating "lift-outs" of retail businesses through our unique model of independence and specialty focus. As these advisors seek to deliver financial advice to the next generation of clients, they can benefit from the technology and services Cetera offers to help advisors accelerate growth. In addition, we look forward to supporting and expanding the programs these advisors have established to attract new entrants to the profession by working closely with colleges and universities."
Cetera was advised on these transactions by Deutsche Bank Securities Inc.
