RCS Capital Corporation (RCAP), a holding company controlled by Nicholas S. Schorsch and a team of managers, is continuing the rapid acquisition and merger pace set during this year with the announcement of plans to acquire Summit Financial Services Group Inc.
RCAP said Monday that it is acquiring Summit for $49 million or $1.43 per share in a deal that is expected to be completed in the first quarter of next year. Summit will continue to operate under its own name.
The independent broker-dealer has 305 financial advisors in 230 offices across the United States. It has $7.5 billion in assets under management. Summit will be a stand-alone line of business complementing RCAP’s other businesses, several of which have been acquired in the last few months.
The purchase includes the subsidiary Summit Brokerage Services Inc., an SEC registered broker-dealer and Finra member. Current management, including Marshall T. Leeds, chairman of the board of directors, CEO and president of Summit, will continue at Summit.
Schorsch, a leading player in the real estate market and nontraded REITs, recently announced the acquisition of several firms that expand RCAP’s reach into other areas of the financial services world.
In October, RCAP announced the acquisition of Investors Capital Holdings, a move that significantly expanded RCAP’s holdings in the broker-dealer sector. That announcement came one day after the public holding company said it would acquire Hatteras Funds Group in the alternative investment space.
Those back-to-back moves came on the heels of a September announcement that RCAP would acquire First Allied Holdings Inc., an independent broker-dealer with $32 billion in assets and 1,500 independent financial advisors.