National Financial Partners
acquired eight firms, including five "with a particular emphasis on benefits."
The New York-based financial services outfit said one target is an annuity and life insurance brokerage company, one serves the high net worth life insurance and wealth transfer market, and one is an investment advisory firm.
"These firms provide valuable expertise and scale in their respective markets and will contribute to the growth and diversification of our overall business, particularly in the corporate and executive benefits marketplace," said CEO Jessica Bibliowicz, who is the daughter of
magnate Sandy Weill.
In 2005, NFP said, the eight acquired firms generated revenue of $39.7 million. NFP agreed to pay $36.6 million in cash and 347,000 shares for seven acquisitions, plus the assumption of $600,000 of debt. NFP's share of a related subacquisition purchase cost $1.5 million in cash.
NFP said it acquired base earnings, reflecting the cumulative preferred portion of the pre-tax earnings before owners' compensation of acquired firms, of $9.9 million effective Jan. 1.
"We are pleased that our 2006 acquisition year is off to a very solid start," Bibliowicz said. "We remain focused on continuing the acquisition momentum, as well as being a partner to our over 160 existing NFP firms."