Guggenheim to Acquire Security Benefit
A news release said that among the buyers is an investor group that includes certain shareholders of Guggenheim Partners, a Chicago financial services company.
The Guggenheim-led group will make an investment of approximately $400 million in Security Benefit. Additional terms of the transaction were not disclosed. The transaction is expected to close in the late second quarter or early third quarter of 2010.
“We believe that Guggenheim Partners brings resources and product development capabilities that will be advantageous to Security Benefit’s current and future clients,” said Todd Boehly, managing partner in the office of the CEO of Guggenheim Partners, in the announcement.
Guggenheim Partners and Security Benefit began working together in June 2009 when Guggenheim became the investment adviser for Security Benefit’s general account, according to the companies.
The announcement said Security Benefit’s four primary businesses will benefit from continued capital investments in technology, product development, and support.
As part of the transaction, Howard R. Fricke, who served as Security Benefit’s president and chief executive officer from 1988 to 2000 and chairman from 1996 to 2006, will serve as interim chairman of the board, president and chief executive officer effective immediately. Fricke will lead the organization through the transition until Guggenheim identifies a permanent chief executive officer and president for Security Benefit, the announcement said.
Security Benefit retains its network of offices and will continue to occupy its Topeka corporate headquarters.
More information about Guggenheim is available at www.guggenheimpartners.com.