Ladenburg Thalmann (NYSE MKT: LTS) said it would acquire KMS Financial Services, a Seattle-based independent broker/dealer with about 325 advisors and $14 billion in assets, for $24 million in cash and stock. After the purchase, Ladenburg will have 3,500 advisors with $110 billion in client assets, and $1 billion in revenue across the firm. As of 1 p.m. eastern time, Ladenburg’s stock was up 5.8 percent.
“This is a good indicator that [Ladenburg is] going to continue into an expansion mode and commit to owning independent b/ds and then cross selling their investment banking services through the independent b/ds they own,” said Jonathan Henschen, president of recruiting firm Henschen & Associates.