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NEW YORK, and
Oct. 2, 2013 /PRNewswire/ --
RCS Capital Corporation ("RCAP") (NYSE: RCAP) and Investors Capital Holdings, Ltd. ("ICH") (NYSE MKT: ICH) announced today that they have entered into a letter of intent relating to the acquisition by RCAP of ICH. Following this transaction, ICH and its subsidiaries will become RCAP's sixth line of business (after the recently announced acquisition of the Hatteras Funds Group) and, through the leadership of
Tim Murphy, President and Chief Executive Officer of ICH, and his management team, will continue to operate autonomously under ICH's respective brands as part of the RCAP family of companies.
Incorporated in 1995, ICH is a financial services holding company that operates primarily through its wholly-owned broker-dealer and registered investment advisor subsidiary, Investors Capital Corporation. ICH provides independent broker-dealer services and investment advisory services.
With its approximately 550 registered representatives across
the United States, ICH is expected to complement and diversify RCAP's revenue stream from its other lines of business: an existing wholesale broker-dealer, investment banking and capital markets services, transaction management and transfer agency businesses. Upon the closing of the ICH acquisition, RCAP expects that it will have deployed the remaining proceeds from its
June 2013 initial public offering.
The closing of the transaction will be subject to certain to-be-agreed-upon conditions including SEC and FINRA approval of the proposed change in control and approval of the transaction by the stockholders of ICH. Any definitive agreement will contain customary representations, warranties and closing conditions. There can be no assurance, however, that RCAP and ICH will be successful in negotiating a definitive agreement or whether the terms of such definitive agreement will differ substantially from those described herein.