Minneapolis-based Ameriprise Financial announced on Monday that it will acquire Investment Professionals Inc., a San Antonio-based broker-dealer with $8 billion in assets under management, in a deal expected to close in the third quarter of 2017. The purchase price was not disclosed.
The acquisition comes six years after Ameriprise sold Securities America, an independent Omaha, Neb.-based broker-dealer, to Ladenburg Thalmann for $150 million. That sale came after Securities America and Ameriprise were forced to reimburse clients for losses they suffered on hundreds of millions in securities representing private placement medical receivables that turned out to be bogus.
While other B-Ds also suffered losses on the same private placement securities, Ameriprise had the deepest pockets and was forced to pay the most in settlements, prompting it to exit the independent brokerage business. In 2011, Ameriprrise took $158 million in losses associated with the private placement.
Investment Professionals specializes in serving financial institutions, including banks and credit unions, with investment programs. The company currently works with roughly 200 advisors operating out of 140 financial institutions in 29 states.
Scott Barnes, chairman of Investment Professionals, founded the firm in 1992.
“We are thrilled to celebrate our 25th anniversary next month as a new member of the Ameriprise family,” said Barnes in a released statement. Barnes will continue as an advisor as the firms integrate and grow.
Jay McAnelly, president and CEO of Investment Professionals, will join Ameriprise and report to Pat O’Connell, executive vice president of Ameriprise Advisor Group.
Additional details about the transaction were unavailable at the time of the announcement.