Focus Financial Partners Inc. is acquiring Loring Ward Holdings for $235 million in cash and stock, in a bid to scale its outsourced services for independent advisers.
Loring Ward, which offers a turnkey asset management program, manages $17 billion in assets and has a network of more than 200 registered investment advisers and 75 broker-dealers. Focus is merging the firm with an existing partner firm, The Buckingham Family of Financial Services, an affiliate of which — BAM Advisor Services — is also a TAMP.
Focus, which is referred to as an "RIA roll-up," is financing the deal — for 100% of Loring Ward — with $117.5 million in cash consideration and $117.5 million in common stock. Focus will pay $92.5 million in cash at closing, and the remaining $25 million in equal increments of $12.5 million at the six- and 12-month anniversaries of the deal closing.
Focus may pay more money based on revenue growth thresholds over the two successive three-year periods following the closing of the deal, slated to occur toward the end of 2018.
The merger will create a "scale player" reaching more than 300 RIAs, said Rudy Adolf, chairman and CEO of Focus Financial. The deal is one of the largest in the firm's history, he added.
Focus Financial went public in July.