NEW YORK (AP) — RCS Capital Corp. is buying financial services holding company Investors Capital Holdings Ltd. in a cash-and-stock deal valued at about $52.5 million.
RCS Chairman Nicholas Schorsch said in a statement that the acquisition will help it diversify its business and expand its distribution channels.
Investors Capital will continue to operate under the ICH brand and its current management team will remain in place. The company, based in Lynnfield, Mass., has more than $1 billion of assets under management and more than 450 financial advisers.
The transaction is expected to close in 2014's first quarter. It still needs approval from ICH shareholders.
New York-based RCS Capital's stock gained 20 cents to $17.20 in midday trading on Monday. Shares of Investors Capital Holdings added 44 cents, or 6.6 percent, to $7.10.
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