Schorsch’s RCS Capital to Buy Second Broker-Dealer in Two Days
RCS Capital Corp. (RCAP), the brokerage led by Nicholas S. Schorsch, agreed to buy broker-dealer J.P. Turner & Co. and an affiliated investment-advisory business for $27 million, the firm’s second acquisition in two days.
RCS Capital will pay 70 percent of the purchase price in cash and the rest in stock for the Atlanta-based brokerage and J.P Turner & Co. Capital Management, according to a statement today. The deal, which will add about 325 advisers, is expected to be completed this year, New York-based RCS Capital said.
The acquisition “represents another important step in realizing RCAP’s strategic vision to become the leading financial-services firm focused on the direct-investment sector,” Schorsch said in the statement.
RCS Capital said yesterday that it would buy brokerage Cetera Financial Group from Donald Marron’s Lightyear Capital LLC for $1.15 billion. In the past four months, it has also agreed to purchase Summit Financial Services Group Inc. and Investors Capital Holdings, both brokerages, and Hatteras Funds Group.
RCS Capital gained 3.4 percent to $19.15 in New York after announcing the Cetera acquisition. The brokerage will have about 9,000 advisers once that deal is completed, according to a statement yesterday.
Schorsch, is also the chairman of real-estate investment trust American Realty Capital Properties Inc. (ARCP), valued at more than $3 billion.
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