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

INTV

Ed Slott: Tax strategies to help clients take advantage of market declines

When the markets decline or are volatile, it is an opportunity to put a few retirement savings strategies to work, according to Ed Slott, founder of Ed Slott's Elite IRA Advisor Group.

Latest news & opinion

Odds are, the $700M Powerball winner will need lots of advice

A good financial adviser — or, better yet, a team of them — would provide a sense of perspective and calm that would hopefully prevent this winner from following in the footsteps of so many past winners who wound up broke in just a few years.

Emerging issues affecting financial advice

The profession will need to adjust to enormous shifts in the socioeconomic environment in the coming decade.

Cetera broker-dealers to pay back $3.3 million to clients overcharged for mutual funds

Over an eight-year period, the B-Ds failed to properly supervise sales charge waivers to clients in retirement plans and charitable organizations.

Fiduciary advocates press CFP Board for specifics on standards changes

Meanwhile, few brokerages and their trade associations, which blasted the DOL's fiduciary rule in comment letters, are responding to the CFP Board's proposal.

Big gains attract new money to emerging markets, but should investors stay?

An estimated $6.7 billion has flowed into emerging-market stock funds and ETFs so far this year, according to Morningstar.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print