Investors Capital shareholders back Schorsch's RCS Capital merger

$52.5 million cash and stock deal scheduled to close on Friday

Jul 9, 2014 @ 11:22 am

By Bruce Kelly

nicholas schorsch, rcs capital, rcap, investors capital, shareholders, merger, deal, M&A
+ Zoom

Investors Capital Holdings Ltd. said Tuesday its shareholders had approved the terms of the merger with RCS Capital Corp., best known by its ticker symbol RCAP. Announced last October, the deal is scheduled to close on Friday, Investors Capital said in a statement Tuesday.

Buying Investors Capital Holdings for $52.5 million in cash and stock was one of five separate acquisitionsby RCAP and its executive chairman Nicholas Schorsch to build a far-ranging network of independent broker-dealers that are home to 9,000 registered representatives and advisers. Investors Capital Holdings is the last of those announced acquisitions to close.

According to a filing with the Securities and Exchange Commission, Investors Capital shareholders will receive $7.25 in cash per share or an equal consideration of RCAP stock, which was trading at $21.50 on Wednesday morning in New York.

The biggest asset of Investors Capital Holdings is its independent broker-dealer, Investors Capital Corp. The firm had 441 producing reps and advisers in 2013 and total revenues of $93.2 million.

At the end of June, RCAP said it had closed its previously announced acquisition of the Hatteras Funds Group, a family of alternative investment mutual funds. Hatteras Funds will continue to operate under current management and the Hatteras brand.

0
Comments

What do you think?

View comments

Recommended for you

Sponsored financial news

Featured video

Events

Creating client events with a 'wow'

Financial adviser Ryan Furstenau has turned his passion for Dodge Vipers into new clients. Learn about his event and how it has helped him prospect in a small community.

Video Spotlight

The Search for Income

Sponsored by PGIM Investments

Recommended Video

Path to growth

Latest news & opinion

E*Trade acquiring custodian Trust Company of America

Discount broker buying second-tier custodian for $275 million.

Another thousand Dow points higher, and investors yawn

Market milestones keep falling like dominoes, with 51 records broken so far this year.

LPL retains $570 million with super-OSJ deal

Kansas-based nVision Wealth will come under supervision of Chicago-based IHT Wealth Management.

How does your advisory firm stack up?

Comparing a firm's pay to the competition can point out vast flaws.

10 signs your client is cheating on you

Sure signs that clients may be on the way out the door.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print