NEW YORK, Nov. 18, 2013 /PRNewswire/ -- RCS Capital Corporation ("RCAP") (NYSE: RCAP) announced today that on November 16, 2013, RCAP and a newly formed wholly-owned subsidiary of RCAP entered into an agreement and plan of merger (the "Merger Agreement") with Summit Financial Services Group, Inc. ("Summit") (OTC Bulletin Board: SFNS) by which RCAP will acquire Summit for $49.0 million, or approximately $1.43 per share (as more fully defined in the merger agreement). Following the merger, Summit and its subsidiaries, including its SEC-registered broker-dealer and FINRA-member subsidiary Summit Brokerage Services, Inc., will continue to operate under current management and the "Summit" brand.
Through its 305 financial advisors in 230 offices located throughout the United States, Summit provides a broad range of securities brokerage and investment services to primarily individual investors, sells insurance products, including variable and fixed annuities and life insurance, and provides, through its SEC-registered investment advisor subsidiary, asset management and investment advisory services.
Following the merger, Summit will constitute a new stand-alone line of business that is expected to complement RCAP's other lines of business, including an existing wholesale broker-dealer, investment banking and capital markets services, transaction management and transfer agency businesses.William M. Kahane, Chief Executive Officer of RCAP, commented, "Summit Financial is a top-tier independent broker-dealer with over $7.5 billion of assets under management. We are thrilled to have Summit join RCAP's expanding roster of financial services firms. Summit's dedication to top quality customer service complements RCAP's platform of high quality investment solutions and broad distribution network. The Summit transaction demonstrates our continuing success in identifying attractive acquisition opportunities in the independent broker-dealer community to provide enhanced value and stability for our equity holders." Marshall T. Leeds, Chairman of the Board of Directors, CEO and President of Summit, commented, "We are excited about joining RCAP's family of independent broker-dealers and contributing to the growth of the industry's premier independent broker-dealer platform. Furthermore, we believe that RCAP's commitment to maintain the separate identity and culture of its broker-dealers, while at the same time allowing them to leverage the resources of what we believe to be one of the industry's fastest growing and most innovative firms, will result in the realization of our shared vision of providing even greater opportunities for Summit advisors. As always, I would like to thank our financial advisors, their staffs, and our home office associates for their hard work and dedication." The transaction is subject to the approval of Summit's stockholders, as well as certain regulatory approvals and filings and other customary closing conditions. The transaction is expected to close in the first quarter of 2014 and is subject to certain regulatory approvals and filings and other customary closing conditions.