'Blank check' firm buys Advanced Equities

Dekania Corp., a special-purpose acquisition company looking to invest in an insurance business, announced Monday that it was merging with Chicago-based Advanced Equities. Advanced Equities has 900 reps and advisers across four broker-dealers, the most prominent of which is First Allied Securities Inc. of San Diego. The broker-dealer’s advisers sell insurance, among other products. The deal's value is not fixed right now, but could be worth between $180 million to $200 million in Dekania stock, if Dekania's shareholders approve the deal, according to Thomas Friedberg, the chairman, president and CEO of Dekania. Dekania is publicly traded on the American Stock Exchange of New York. It was trading at $9.64 at 12:30 p.m. today. It will assume the Advanced Equities name if the deal goes through, said Mr. Friedberg. Advanced Equities, which is keeping its management team, will then become a publicly traded company. A key ingredient to the deal is $94.5 million that Dekania currently has on reserve. Advanced Equities potentially could use that money to pay down debt or make acquisitions, Mr. Friedberg said. The independent-contractor market has recently seen a flurry of activity from outside investors.