Press Release – RCS Capital Corporation\u00a0(RCAP) announced today that on\u00a0October 27, 2013, RCAP and a newly formed wholly owned subsidiary of RCAP entered into an agreement and plan of merger with Investors Capital Holdings, Ltd. (ICH) by which RCAP will acquire ICH for approximately\u00a0$52.5 million, comprised of cash and RCAP common stock. Following the merger, ICH and its subsidiaries, through the leadership of\u00a0Tim Murphy, CEO and President of ICH, and his management team, will continue to operate under current management and the “ICH” brand.<\/p>\n
A four-time winner of\u00a0Investment Advisor’s\u00a0<\/i>Broker-Dealer of the Year award, ICH is a financial services holding company that operates primarily through its wholly owned broker-dealer and registered investment adviser subsidiary, Investors Capital Corporation (“ICC”). ICC provides broker-dealer services to investors in support of trading and investment in securities, alternative investments and variable life insurance as well as investment advisory and asset management services.<\/p>\n
With\u00a0over 450 registered representatives in over\u00a0300 branch locations across\u00a0the United States, following the acquisition by RCAP, ICH will constitute a new stand-alone line of business that is expected to complement RCAP’s existing revenue stream from its other current lines of business: a wholesale broker-dealer; investment banking and capital markets services; transaction management; and transfer agency businesses.\u00a0 Upon the closing of the ICH acquisition, RCAP expects that it will have deployed the remaining proceeds from its\u00a0June 2013\u00a0initial public offering.<\/p>\n
Nicholas S. Schorsch, Chairman of RCAP, commented, “By welcoming ICH into RCAP’s expanding roster of financial services companies, we continue to diversify our platform, expand and complement our distribution channels, expand the RCAP management team’s expertise and grow revenue. This transaction is expected to enhance value for our equity investors by expanding our exposure to the retail broker-dealer and investment advisory space, thereby strengthening RCAP’s income stream with another strong business line.”<\/p>\n
William M. Kahane, Chief Executive Officer of RCAP, commented, “With over\u00a0$1 billion\u00a0of assets under management and over\u00a0450 financial advisors, ICH is one of the premier independent broker-dealers in the United States.\u00a0We are excited to work with\u00a0Tim Murphy\u00a0and we jointly aim to transform the alternative investment financial advisory sector.”<\/p>\n
Timothy B. Murphy, President and Chief Executive Officer of ICH, commented, “We are excited at the opportunities afforded to ICH by this partnership. The combined capabilities of ICH and RCAP position us strategically to pursue our vision of becoming not the biggest but the best independent broker-dealer in the industry.”<\/p>\n
The transaction is subject to the approval of ICH’s stockholders, as well as certain regulatory approvals and filings and other customary closing conditions.\u00a0 The transaction is expected to close in the first quarter of 2014.<\/p>\n","protected":false},"excerpt":{"rendered":"
Press Release – RCS Capital Corporation\u00a0(RCAP) announced today that on\u00a0October 27, 2013, RCAP and a newly formed wholly owned subsidiary of RCAP entered into an agreement and plan of merger with Investors Capital Holdings, Ltd. (ICH) by which RCAP will […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13,4],"tags":[],"class_list":["post-38865","post","type-post","status-publish","format-standard","hentry","category-press-releases","category-syndicated"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/38865","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=38865"}],"version-history":[{"count":2,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/38865\/revisions"}],"predecessor-version":[{"id":38867,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/38865\/revisions\/38867"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=38865"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=38865"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=38865"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}