The acquisition, if it goes through, will produce a US business with nearly 11,500 financial advisors and more than $450 billion of client assets.

Advisor Group, the US independent wealth management network, and US-listed Thalman Financial Services Inc have entered a $1.3 billion merger agreement.

Under the agreement, Advisor Group will buy Ladenburg through a cash purchase, converting each outstanding share of the firm's outstanding stock at $3.5 per share. The total enterprise value of the deal is about $1.3 billion, taking into account Ladenburg's common stock, outstanding debt and preferred stock, a statement yesterday from the firms said.

The deal, if it goes through, will produce a business with nearly 11,500 financial advisors and more than $450 billion of client assets, the organizations said.

Committed financing for this transaction has been provided by Bank of America, UBS Securities, Barclays, Deutsche Bank Securities and Goldman, Sachs & Co.

The statement did not say whether there might be business or staff duplication - which could affect jobs. This publication has contacted the parties to clarify and may update in due course.

The agreement is part of continued consolidation in the North American wealth management sector, driven by factors such as a need for economies of scale to handle rising client demands and heavier regulation.

The definitive merger agreement and the transactions contemplated were unanimously approved by Ladenburg's board of directors. The deal, which is subject to customary closing conditions, is expected to be completed in the first half of next year.

The expanded Advisor Group will still led by its chief executive and president, Jamie Price. The leadership team will include senior executives from both firms. Advisor Group's network of firms consists of FSC Securities Corporation, Royal Alliance Associates, SagePoint Financial and Woodbury Financial. Ladenburg's independent advisory and brokerage firms include Securities America, Triad Advisors, Investacorp, KMS Financial Services and Securities Service Network (SSN). Additional Ladenburg subsidiaries include Highland Capital Brokerage, an insurance solutions brokerage; Premier Trust, a financial advisor-focused trust services company; and Ladenburg Thalmann & Co, a middle-market investment bank.  

"This is a transaction that maximizes value for our shareholders, while positioning our financial advisors for continued growth and success. We have always been impressed with Advisor Group's platform, offerings and leadership," Ladenburg Thalmann chairman, president and CEO Richard Lampen, said.

When the transaction is complete Advisor Group will continue to operate under a multi-brand network model of firms.

Advisor Group has recently invested in enterprise-level service offerings, including eQuipt, the firm's fully-digital client onboarding system; MyCMO, its personalized advisor marketing platform; MySuccessionPlan.com, its suite of bundled succession planning resources; and its integrated CyberGuard Program for cybersecurity.

Both Advisor Group and Ladenburg use Pershing and National Financial (part of Fidelity Custody & Clearing Solutions) as their largest clearing providers. Jefferies LLC is acting as financial advisor to Ladenburg, with Sullivan & Cromwell LLP serving as Ladenburg's legal counsel. Eversheds Sutherland, Kirkland & Ellis LLP, and Greenberg Traurig LLP are serving as legal counsel to Advisor Group and Reverence Capital.