European Wealth Group is set to acquire US broker and financial services group Newbrdge creating a firm with $4bn assets under management (AUM) and 20,000 clients on its platform.
Subject to US Financial Industry Regulatory Authority (FINRA) approval, the acquisition is set to complete in late 2017 or early 2018 with European Wealth expected to rebrand as Kingswood after it completes.
Headquartered in Florida, Newbridge has a network of 220 professional advisers with 46 offices across the US and an approximate AUM of $1.7bn.
Funding for the acquisition will be met by a convertible loan, underwritten by one of European Wealth’s shareholders KPI.
There will be no change to the US management team, which will continued to be managed by Newbridge CEO Leonard Sokolow and Thomas Casolaro remains as president.
The firm said the move represents a “clear and differentiated” direction with the move allowing the cross-selling of products across global markets to its client base.
“We are ambitious to grow both organically and dynamically by acquisition,” said Marianne Ismail, CEO of European Wealth. “This is our first key step to deliver a profitable and differentiated strategy in the financial services arena.
“We anticipate following this deal with further exciting accretive acquisitions in the future, strengthening our position in major international markets, product offering and AUM.
“Newbridge presents a unique opportunity to invest in an established, well-positioned and nationally represented company.
“It significantly increases our global footprint by gaining immediate access to the largest wealth management market in the world, which we intend to build and scale substantially.
“The acquisition will empower European Wealth to diversify and grow its earning base, international position and influence to attract more clients, cross-sell products and significantly increase our AUM.”
Sokolow and Casolaro said: “We believe that the proposed combination of our two businesses represents an exciting opportunity to grow a truly global business, focused on delivering innovative products to our clients.
“European Wealth benefits from supportive shareholders and, with their backing, we can aim to rapidly build our product offering and global footprint, and ultimately, enhance our returns to shareholders.”