News
August 04, 2008
OMAHA, August 5, 2008 − Securities America Financial Corporation has signed a definitive agreement to acquire Folsom, Calif.-based Brecek & Young Advisors, Inc from Security Benefit Corporation (SBC) of Topeka, Kansas. Terms of the transaction were not disclosed.
Under the acquisition plan, Brecek & Young Advisors’ employees and advisors will become affiliated with Securities America, Inc. in late 2008. The addition of Brecek & Young Advisors represents approximately $42 million in gross revenues, more than $1.3 billion in fee-based assets under management and more than 300 producing financial advisors. After the transition, Securities America will serve approximately 2,000 independent advisors with an estimated $550 million in revenue and $15 billion in fee-based assets under management.
“This acquisition is a natural progression of the success we have cultivated over the past 24 years,” said Securities America Chairman and CEO Steve McWhorter. “It further demonstrates that Securities America is a top-tier independent broker/dealer and that we are committed to growth. This is a great fit because our cultures and product mixes are very similar. In addition, Brecek & Young’s award-winning, service-oriented reputation will complement Securities America’s history of extraordinary service as our advisors’ business growth expert.”
“Combining the strengths of our companies makes for a powerful value proposition for the financial advisors and employees at both firms,” said Brecek & Young President, Chairman and CEO Chris Ranney. “There are many similarities between Brecek & Young and Securities America, specifically in the area of providing extraordinary service to advisors and the focus on wealth management. We are looking forward to leveraging the technology, practice management training and coaching programs that Securities America is renowned for, and we are excited to introduce our thriving internal asset management program to their advisors.”
The acquisition will give Securities America’s current advisors access to Iron Point Capital Management, Brecek & Young’s successful internal asset management program, and to extensive market expertise, including 403(b) issues. Advisors from both firms will benefit from a much larger pool of successful advisors with whom they can network for best practices, as well as business succession and acquisition planning. They will also see a potential for cost reductions over time as economies of scale are realized.
“As we searched for a buyer for Brecek & Young, we sought a new owner that demonstrated the ability to provide the focus, necessary capital, managerial expertise, reputation and capabilities to help Brecek & Young grow to its fullest potential. SBC selected Securities America because of its leading and well-respected position in the independent market space, and because its culture most closely resembles the tradition of extraordinary service, innovation and open communication that Brecek & Young represents,” said Security Benefit Corporation Chairman and CEO Kris Robbins.
The transaction is subject to regulatory approval.
Securities America is committed to maintaining offices in both Folsom, Calif. and Cincinnati, Ohio, Brecek & Young’s current home office locations.
Securities America Financial Corporation is a wholly owned subsidiary of Ameriprise Financial, Inc.
About Securities America
Headquartered in Omaha, Nebraska, Securities America, Inc. currently has more than 1,600 financial professionals nationwide who have invested more than $44 billion for their clients. Securities America Advisors, Inc. is an SEC-Registered Investment Advisory firm with more than $13.5 billion in assets under management and administration that offers investment management, financial advice and financial planning through financial advisors. Securities America’s mission is to foster the success of financial professionals so they can provide quality, objective financial counsel and services to their clients. Additional information is available at
www.securitiesamerica.com.
About Brecek & Young Advisors, Inc.
Headquartered in Folsom, CA with a Midwest office in Cincinnati, OH, Brecek & Young is a full service broker dealer and registered investment advisory firm that services the needs of individuals and corporations nationwide. BYA has earned numerous awards for its customer service and wealth management platform including five Broker/Dealer of the Year Awards by Investment Advisor Magazine and all four of Boomer Market Advisor Magazine’s Broker/Dealer Excellence Awards in 2007. More information on Brecek & Young Advisors, Inc. can be found on the Internet at
www.brecek.com.
About Security Benefit Corporation
Security Benefit Corporation fosters strong partnerships to provide insightful and customized retirement solutions for employers and individual investors nationwide. Through a broad advisor network and its nationally recognized money managers, Security Benefit provides mutual funds, annuities and retirement plans and programs. As an industry leader in service technology, Security Benefit affiliates also offer business processing and broker/dealer solutions tailored to the financial services marketplace. For more information, visit
www.securitybenefit.com.
About Ameriprise Financial
Ameriprise Financial, Inc. is a diversified financial services company serving the comprehensive financial planning needs of the mass affluent and affluent. For more information, visit
ameriprise.com.
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