The companies signed a definitive agreement outlining details of the purchase transaction, which is scheduled to close by year end, subject to regulatory approval, according to a press release. CFG’s senior management team will remain in place and the firm will continue to operate independently in Maryland under Securian’s ownership.
According to the release, each firm is enjoying strong growth: CFG’s three-year compound annual growth rate is 17% and SFS’ is 27%. The acquisition will expand SFG’s distribution to nearly 2,000 advisers—approximately 750 with CFG and 1,220 with SFS.
Securian said no layoffs are expected at either firm. “This business combination is beneficial to all parties involved,” said Randy Wallake, president of Securian Financial Group, in the release. “The biggest winners are the financial advisers and the clients they serve.”
Eric Meyers, president and CEO, Capital Financial Group, said in the release that CFG’s decision to open a Southern California service office in 2009 for CFG advisers is an example of Securian’s financial strength providing opportunities for CFG to grow and better serve its advisers. According to the release: “Both firms work to retain advisers—one of the biggest challenges facing broker/dealers—by developing “highly personal’ relationships with them.’