Cetera Financial Group (Cetera), one of America’s largest networks of financial professionals, announced today that it has entered into a definitive agreement to acquire the retail wealth business of Securian Financial Group, Inc. (Securian Financial). Under the agreement, Cetera will acquire certain assets related to Securian Financial Services, Inc. – Securian Financial’s broker-dealer, registered investment advisor and insurance agency – as well as the equity of Securian Trust Company, NA. More than 1,000 financial professionals across 30 independent firms representing $47.4B in assets under administration and $24.8B in assets under management (as of December 31, 2022) will be integrated as a distinct community, branded as Cetera Wealth Management Group, within the Cetera Advisor Networks community. In addition, the transaction includes a broad strategic partnership agreement aimed at aligning the interests of the two organizations, including an arrangement whereby Securian Financial will distribute its individual life and annuity products through Cetera’s affiliated financial professionals.
As part of the acquisition, Cetera will extend employment offers to the management team and all eligible employees who support Securian Financial’s retail wealth business. Securian Trust Company, NA, will become a standalone Cetera entity and will continue to serve its existing advisors and clients, and expand to serve those in Cetera’s other businesses. The transaction is expected to close in the third quarter of 2023, pending regulatory approval. Terms of the deal are not disclosed.
“We have long admired Securian Financial’s commitment to their managing partners, their powerful independent operating model and dedicated community of independent financial professionals,” said Adam Antoniades, CEO at Cetera. “Our Wealth Hub, which uniquely brings choice and flexibility to our financial professionals as well as best-in-class growth capabilities, is complementary and synergistic to Securian Financial’s operating model, and we envision untapped growth potential for the independent financial professionals joining the Cetera network. Our firms share several common values, including a purpose-driven, service-first mindset that is grounded in our mission to help financial professionals and financial institutions grow. This, coupled with the strength of the managing partner relationships that exist, not only offers a recipe for success but makes sense on so many levels.”
“This transaction allows Securian Financial to increase our strategic focus and accelerate growth in our priority markets, while at the same time continue our commitment to the retail wealth business through our strategic partnership with Cetera,” said Chris Hilger, Securian Financial’s chairman, president and CEO. “Cetera delivers on all important aspects of our acquisition partner selection criteria, including community focus, differentiating scale, and industry-leading technology choice and product platforms. Most importantly, Cetera is a great cultural fit, valuing our unique operating model and commitment to accelerating growth for financial professionals.”
“This acquisition underscores Cetera’s strong financial health and wealth hub ethos and represents an example of our promise to grow organically, as well as through acquisitions that are the right fit for our business and community of financial professionals,” said Jeffrey Buchheister, CFO at Cetera. “We are excited to welcome the Securian Financial team to Cetera and look forward to many shared successes to come.”
Morgan Stanley and UBS Investment Bank are acting as financial advisors and Willkie Farr & Gallagher LLP is acting as legal advisor to Cetera. Goldman Sachs & Co. LLC is acting as financial advisor and Eversheds Sutherland is acting as legal advisor to Securian Financial. UBS Investment Bank is serving as the Lead Left Arranger for the financing.