In The News
Securities America Recently Acquires Assets of Foothill Securities
Deal will add 210 advisors with $5.14 billion in client assets and $38 million in revenue
LA VISTA, NEB., Aug. 19, 2016 – Securities America, a wholly owned subsidiary of Ladenburg Thalmann Financial Services, Inc. (NYSE MKT: LTS, LTS PrA), announced today a definitive agreement to acquire certain assets of Foothill Securities, Inc., an advisor-owned, independent broker-dealer headquartered in Santa Clara, Calif.
Founded in the heart of Silicon Valley in 1962, Foothill Securities currently services the needs of 210 advisors in 12 states with $5.14 billion in client assets and $38 million in revenue.
Foothill Securities President and CEO Steve Chipman said the firm has been actively seeking a larger firm to acquire its assets for several months. The move will provide better support to existing advisors and enhanced offerings to attract new advisors.
“We selected Securities America, one of the country’s largest independent broker-dealers, because it will offer our advisors additional compliance support, better technology, broader asset management resources and practice management programs for the full practice life cycle,” Chipman said. “At the same time, advisors will still receive the close-knit culture and personal attention of our branch support team. Securities America, like Foothill Securities, understands the importance of the advisor’s role in helping clients achieve their financial goals.”
Increasing compliance costs, particularly in light of the new Department of Labor Fiduciary Rule, reinforced the decision to find a buyer, Chipman said. He and the firm’s leadership team chose Securities America because of its similar philosophy of putting advisors’ needs first, so they can better serve their clients.
Securities America’s CEO and President Jim Nagengast agreed Securities America’s culture makes it an ideal fit for Foothill’s advisors and staff.
“We’re pleased Foothill Securities chose to partner with Securities America on this important decision,” Nagengast said. “Foothill’s advisors can be confident they’re joining a broker-dealer with the right people and resources to help them promote and grow their practices.”
In the past eight years, Securities America has developed strong expertise in transitioning large groups of advisors. With the Foothill acquisition, the company will have completed eight deals, totaling more than 900 advisors with approximately $114 million in revenue and over $12.6 billion in client assets.
“We have a very sophisticated and detailed process to efficiently work through all the details and requirements associated with this type of transaction,” said Gregg Johnson, Securities America executive vice president of branch office development and acquisitions. “Our project list includes more than 750 tasks across 12 departments, led by a cross-departmental team of more than 25 employees. No other independent broker-dealer, to our knowledge, has done as many of these transactions in the past three years as Securities America, and we continue to expand and refine our expertise in this market.”
The transaction is subject to customary closing conditions, including regulatory approval.
About Securities America
Securities America is one of the nation’s largest independent broker-dealers with more than 2,000 independent advisors and $58 billion in client assets.
Securities offered through Securities America, Inc., member FINRA/SIPC. Advisory services offered through Securities America Advisors, Inc., an SEC Registered Investment Advisory Firm. Securities America is not affiliated with any other entity named.
Ladenburg Thalmann rang the closing bell on the NYSE December 11, 2014, celebrating the firm's 135th Anniversary of becoming a member firm of the exchange.
Dr. Phillip Frost, Chairman of the Board of Directors, is seen hitting the gavel and Richard J. Lampen, President, CEO, rang the NYSE Closing Bell. Also celebrating on the platform from Ladenburg Thalmann is Mark Zeitchick, Executive VP and Director, Adam Malamed, COO, Brett H. Kaufman, Senior VP and CFO, and Jim Nagengast, President, CEO Securities America, Inc.
Customer brokerage accounts at Securities America, Inc., are carried by Pershing, LLC, member FINRA, NYSE, SIPC, and a subsidiary of The Bank of New York Mellon Corporation (BNY Mellon). Securities in brokerage accounts are protected up to $500,000.00 (of which $250,000.00 can be for claims for cash awaiting reinvestment). For details, visit www.sipc.org. Pershing provides coverage in excess of SIPC limits from certain underwriters at Lloyd's, in conjunction with another commercial insurance company,  for its global customer assets and those of Pershing Securities Limited, its London-based affiliate: an aggregate loss limit of $1 billion for eligible securities across all customer accounts; and a per-customer loss limit of $1.9 million for cash awaiting reinvestment within the aggregate loss limit of $1 billion. For more information about Lloyd's, please see www.lloyds.com. Neither SIPC nor excess of SIPC coverage protects against loss due to market fluctuation.
 Pershing's excess of SIPC insurance coverage is provided by certain underwriters at the Lloyd's insurance market ($950M) and Axis Specialty Europe Ltd. ($50M).
Investor Securities Group, Inc., is still based in Suffolk, Virginia with its corporate finance, administration and compliance offices located on Pruden Boulevard. The firm does not disclose assets under administration.