European Wealth Group (EWG) has agreed to acquire US-based broker-dealer Newbridge Securities and its affiliate investment adviser firm Newbridge Financial Services Group for an undisclosed sum.
Florida-based Newbridge has 46 offices, 12000 clients, more than 220 professional advisers and associates, and oversees around $1.7bn in assets.
The transaction is being structured as EWG’s acquisition of KPI US Holdco, which will in turn acquire 100% of Newbridge. KPI US is owned by Kingswood, which is a 39.99% shareholder in EWS.
The deal will be funded by a convertible loan of $17.6m provided by Kingswood. In order to reflect the global nature of the business, EWG will be rebranded as Kingswood, subject to shareholder nod.
The combined entity will manage nearly $4bn in assets, have 20,000 clients, and will have access across all US states excluding Maine. It will offer investment management, investment banking, financial planning, and broker-dealer services.
The deal is expected to close by the end of 2017 or early 2018, subject to regulatory nod. Newbridge will continue to be managed by its CEO Leonard Sokolow and president Thomas Casolaro following the completion of the transaction.
EWG CEO Marianne Ismail said: “Newbridge presents a unique opportunity to invest in an established, well-positioned and nationally represented company. It significantly increases our global footprint by gaining immediate access to the largest wealth management market in the world, which we intend to build and scale substantially.
“The acquisition will empower EWG to diversify and grow its earning base, international position and influence to attract more clients, cross-sell products and significantly increase our AUM.”