Publish Date : 05-Aug-2014
Ladenburg Thalmann Financial Services Inc. (“Ladenburg”) announced today that it has acquired Highland Capital Brokerage, Inc. (“Highland”), a leading independent insurance brokerage company that delivers life insurance, annuities and long-term care solutions to investment and insurance providers. Highland provides specialized point-of-sale support along with advanced marketing and creative estate and business planning techniques, delivering customized insurance solutions to both institutional clients and independent producers.
Ladenburg acquired Highland for approximately $42 million. The purchase price for the common stock of Highland was $12.7 million, consisting of approximately $3.6 million in cash and 2,540,762 shares of Ladenburg common stock. In addition, Ladenburg repaid Highland’s bank facility of $22.3 million and $7 million of Highland’s promissory notes remain outstanding. Ladenburg Thalmann is a publicly-traded diversified financial services company that is committed to the growth, innovation and sustainability of businesses within the financial services industry. Its subsidiaries include Securities America, Triad Advisors, Investacorp, Premier Trust, Ladenburg Thalmann Asset Management and 135-year-old NYSE member investment bank, Ladenburg Thalmann & Co. Inc. The firm has grown to over 2,800 independent financial advisors with approximately $90 billion in total client assets since it first entered the independent broker-dealer space in 2007.
“The acquisition of Highland marks Ladenburg’s entrance into the wholesale life insurance marketplace and reflects our commitment to building a strong, diversified financial services organization,” stated Dr. Phillip Frost, Ladenburg’s Chairman of the Board and principal shareholder. “We are excited to welcome Highland’s management, principals and associates to the Ladenburg Thalmann family and look forward to their continued success.”
Highland will benefit from Ladenburg’s resources as an established public company, supporting the subsidiary’s growth according to its existing vision and business model. The deal will assist Highland in hiring additional senior sales professionals, accelerating technology and infrastructure upgrades, providing greater training and development for its sales teams, and capitalizing on opportunities in new markets. For the twelve months ended June 30, 2014, Highland had revenues of approximately $46 million.
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