Financial Gravity Companies Inc., a publicly traded company that owns other financial services firms, has executed a merger agreement to acquire Presidential Brokerage Inc., a full-service brokerage and wealth management firm in Greenwood, Colo., in an all-stock transaction, according to a news release.
Under terms of the agreement, approved unanimously by the boards of directors at both firms, existing Financial Gravity shareholders will have a 50% ownership stake in the combined company, and existing Presidential shareholders will have a 50% ownership stake in the combined company on a fully diluted basis.
Financial Gravity, headquartered in Allen, Texas, said that synergies would come from the increased scale of the combined organizations, the sharing of best practices, the increase in ideas, financial innovation, organic growth and cost reduction. Financial Gravity owns a number of other firms that provide services to financial advisors and investors.
Both firms assert that each brings a unique set of strengths to the deal that complement those of the other.
Financial Gravity said its principals have a proven track record of scaling and growing successful firms. The firm’s current goal is to build significant shareholder value by driving financial innovation and serving the expanding needs of independent financial advisors.
Presidential boasts a long, successful history in the Denver area, including a significant radio presence. The company said that following the merger, it will continue to strengthen its position in the independent brokerage industry by focusing on four key elements: practice management, client acquisition, financial innovation, and entrepreneurialism. Above all else, Presidential stressed, its primary goal is ensuring the success of its financial advisors in service to their clients.
Tony Campen, CEO of Presidential, said he was looking forward to the two firms’ new partnership, which would combine each of their strengths and leadership to their mutual benefit.
Scott Winters, CEO and co-chairman of the board of directors at Financial Gravity, said both firms shared the same goal of building a nationwide network of financial advisor representatives.
“We are creating a strong platform for the distribution of financial innovations, wealth management, and insurance services,” he said in the news release. “Our combined brands and businesses mean increased scale and synergies that will help us capture market share.”
When the transaction closes, Winters will continue on in his present role as Financial Gravity CEO and co-chair of the company’s board of directors, but will also take on the added role of executive director at Presidential. Any other additions to the executive team for the merged companies will be announced during the transition period, but no later than transaction closing, the company said.