NEW YORK, Jan. 16, 2014 /PRNewswire/ -- RCS Capital Corporation ("RCAP") (NYSE: RCAP) announced today that it has entered into an agreement to acquire Cetera Financial Group ("Cetera"), a leading independent broker-dealer headquartered in El Segundo, CA, from Lightyear Capital for $1.15 billion in cash, subject to certain customary adjustments. Following this transaction, Cetera and its subsidiaries will become part of RCAP's retail advice platform, complementing the recently announced acquisitions of Summit Brokerage Services and Investors Capital Holdings. Valerie Brown, President and Chief Executive Officer of Cetera, and her management team, will continue to operate Cetera's respective brands as part of the RCAP family of companies.
Nicholas S. Schorsch, Chairman of RCAP commented, with regard to working with Lightyear Capital on this transaction: "I have great respect for the fantastic work Lightyear and their executive team achieved in building value at Cetera. It has been great working with Don Marron, Chairman, and the management group at Lightyear and we are excited to have the opportunity to build on their success as we craft the next iteration at Cetera."
Mr. Schorsch further commented: "Our partnership with Valerie, her senior management team and all of the financial advisors across the U.S. who have chosen to associate their practices with Cetera, represents for us a truly transformative event. We intend for RCAP to be the most important full-service financial services and securities distribution company in the industry by joining our financial advice practice, wholesale distribution and capital markets expertise, and continuously executing on these strategies through our transaction management group. Furthermore, it is our plan to rapidly build out our footprint across America in one seamless step with our family of independently operated retail firms, led by Cetera."