Focus Financial Partners Inc., an aggregator of registered investment advisors, agreed to be acquired by affiliates of Clayton Dubilier & Rice in an all-cash transaction with an enterprise value of more than $7 billion.
Shareholders in New York-based Focus will receive $53 in cash per share, representing a premium of about 36% to the firm’s 60-day average price as of Feb. 1, the day before a potential transaction was announced, the company said in a statement Monday. Funds managed by Stone Point Capital agreed to retain a portion of its investment in Focus and provide new equity financing as part of the deal.
CD&R and Stone Point said they agreed to the deal because of Focus’s competitive positioning in a multitrillion-dollar global industry. Focus, which has almost 90 firms in its partnership, acquires high-performing wealth management firms that primarily serve high-net-worth and ultra-high-net-worth clients, and has a visible presence in the sector globally through its international partner firms, CD&R and Stone Point said.
“We are enthusiastic about the opportunity to partner with Focus to help grow and develop its exceptional partner firm network,” Dan Glaser, a CD&R partner, said in the statement.
The deal is expected to close in the third quarter, and Focus will cease to be a publicly traded company when the takeover is completed. The agreement provides for a 40-day “go-shop” period that expires April 8. A special committee of Focus’s board unanimously determined that the transaction is in the best interests of the company and shareholders, according to the statement.
CEO Dave Welling tells IN that the $72 billion mega-RIA has 'become the catalyst for employee ownership through M&A partnership.'
Financial advisor Stephen Davis shares the lessons he learned after leaving a national broker/dealer to set up his own shop in the first of a new InvestmentNews series in advance of Independence Day.
The "strategic divestiture" comes after years of legal challenges and speculation swirling around the analytics and data aggregation platform.
The $15.96 billion RIA is extending its footprint with a dentist-oriented Midwest practice and another Pacific Northwest team with an aerospace industry focus.
The firm expands its Tri-State presence with a veteran advisor group from New York, while LPL and Osaic also report smaller additions in Texas and the Hudson Valley.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
