Ladenburg scoops up Investacorp

Ladenburg Thalmann has acquired Investacorp, a B-D with close to 500 affiliated reps.
OCT 22, 2007
Ladenburg Thalmann Financial Services Inc. of Miami said this morning it had acquired Investacorp Inc. of Miami Lakes, Fla., an independent-contractor broker-dealer with close to 500 affiliated reps. Investacorp reported $63 million in gross revenue for its fiscal year that ended in June, and it ranked 35 on the InvestementNews survey of leading independent broker-dealers. The deal is structured in three parts, with Ladenburg paying a total of $45.1 million for Investacorp. Ladenburg is paying $25 million in cash to Investacorp’s chairman and CEO, Bruce Zwigard, and a related seller, at the closing of the deal. It will pay another $15 million in cash over a three year period. Ladenburg is also paying $5.1 million to the sellers as a reimbursement for Investacorp’s pre-existing net worth. The firm’s management team would continue to run the business separately from its current headquarters, said Ladenburg in a statement. In 2004, the firm said its shares could be delisted from the American Stock Exchange because of losses. Last year, the firm named a new CEO, Richard Lampen, and relocated to Miami from New York, where its broker-dealer subsidiary, Ladenburg Thalmann & Co. Inc., does business. Earlier this year, Ladenburg reported total revenue for 2006 of $46.9 million up from $30.7 million a year earlier.

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