RCS Capital To Acquire Cetera Financial For $1.15 Bln.

(RTTNews) - RCS Capital Corp. (RCAP) Thursday agreed to acquire Cetera Financial Group, a California-based independent broker-dealer, from Lightyear Capital for $1.15 billion in cash, subject to certain adjustments.

Following the deal, Cetera and its subsidiaries will become part of RCS' retail advice platform, complementing the recently announced acquisitions of Summit Brokerage Services and Investors Capital Holdings.

The deal is subject to FINRA approval and other customary closing conditions, and is is expected to close later in 2014.

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 RCS family of companies.

William Kahane, CEO of RCS, said: "This transaction immediately affords us the benefits of scale, while setting the quality standard in the industry. It enables us to diversify our revenue streams and position our securities sales business to attract best-of-class third-party sponsors..."

Formed in 2010 following the sale of three ING broker-dealers, Cetera is a financial services holding company that provides independent broker-dealer services and investment advisory services through four distinct independent broker-dealer platforms.