Fusion will be integrated into the NFP Advisor Services Group, helping to further link service and technology into a platform for independent financial advisers. The transaction became effective earlier this month.
Fusion has a track record of helping independent financial advisers build practices and has always leveraged NFP Advisor Services Group as its sole provider of broker/dealer and registered investment advisor (RIA) solutions. Fusion, in Elmsford, New York, represents a national network including more than 240 advisers. Stuart Silverman, who founded the company in 2003, will remain with Fusion as chairman emeritus.
Fusion advisers generated more than $60 million in revenue during 2011, the majority of which was recurring revenue. NFP’s revenue will not be impacted by this acquisition because revenue generated by Fusion advisers has historically been included in NFP Advisor Services Group’s revenue. In 2013, the first full year of operations post-transaction, it is expected that NFP Advisor Services Group’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) margins will improve in the range of 75 to 100 basis points from this acquisition.