Cetera To Acquire Securian Financial's Retail Wealth Business

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Jan 25, 2023, 11:30 ET

Securian Financial retail wealth business includes more than 1,000 financial professionals across more than 30 independent firms, representing $47.4B in AUA and $24.8B in AUM

Business to become a distinct community within Cetera Advisor Networks

LOS ANGELES and ST. PAUL, Minn., Jan. 25, 2023 /PRNewswire/ -- 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.

George Connolly, CLU®, ChFC®, AIF®, Executive Vice President, Individual Solutions at Securian

Chris Hilger, Chairman, President and CEO of Securian

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.

About Cetera Financial Group^®

An at-scale wealth hub, Cetera Financial Group (Cetera) offers financial professionals and institutions the latest solutions, support, and services. Breaking away from a commoditized and homogenous IBD model, Cetera instead creatively addresses advisors' and institutions' unique needs, whether they are seeking to grow, scale, or transition with a merger, sale, investment, or succession plan. Cetera proudly serves independent financial advisors, tax professionals, licensed administrators, large enterprises, as well as institutions, such as banks and credit unions. Cetera has an established history of serving large enterprises and financial institutions, providing an established and repeatable blueprint for scalable growth.

Cetera's approach empowers advisors to affiliate in whichever way they deem most appropriate. During the professional life cycle of their practice, the Cetera wealth hub proactively turns – ensuring each advisor's affiliation model identifies and ignites growth levers, in a way that maximizes the value of their practice, people, and legacy. Cetera delivers independent and unbiased financial advice, customized offerings, growth and succession resources, an enhanced advisor tech stack and importantly, an experience where financial professionals don't feel like a number, but an integral part of Cetera's rich and thriving ecosystem.

Home to more than 8,000 financial professionals and their teams, Cetera oversees approximately $322 billion in assets under administration and $115 billion in assets under management, as of December 31, 2022. In a recent advisor satisfaction survey of more than 14,000 reviews, Cetera's Voice of Customer (VoC) program vigorously measures advisor experience and satisfaction 24/7. Currently, it's ranked 4.7 out of 5 stars.

Visit www.cetera.com, and follow Cetera on LinkedIn, YouTube, Twitter and Facebook.

"Cetera Financial Group" refers to the network of independent retail firms encompassing, among others, Cetera Advisors LLC, Cetera Advisor Networks LLC, Cetera Investment Services LLC (marketed as Cetera Financial Institutions or Cetera Investors), and Cetera Financial Specialists LLC. All firms are FINRA/SIPC members. Located at: 655 W. Broadway, 11^th Floor, San Diego, CA 92101.

Individuals affiliated with Cetera firms are either Registered Representatives who offer only brokerage services and receive transaction-based compensation (commissions), Investment Adviser Representatives who offer only investment advisory services and receive fees based on assets, or both Registered Representatives and Investment Adviser Representatives, who can offer both types of services.

About Securian Financial

At Securian Financial, we're here for family. And we're here because of it. We're guided by our purpose of helping customers build secure tomorrows. Since 1880, we've been building a uniquely diversified company that has outlasted economic ups and downs while staying true to our customers. We provide insurance, investment and retirement solutions that give families the confidence to focus on what's truly valuable: banking memories with those who matter most. For more information about Securian Financial, visit securian.com or follow us on Facebook, Twitter or LinkedIn.

Securian Financial is the marketing name for Securian Financial Group, Inc., and its subsidiaries. Insurance products are issued by its subsidiary insurance companies, including Minnesota Life Insurance Company and Securian Life Insurance Company, a New York authorized insurer. Securities and investment advisory services offered through Securian Financial Services, Inc., registered investment advisor, member FINRA/SIPC. Securian Trust Company, N.A., is an affiliate of Securian Financial Group and a national trust bank chartered by the Office of the Comptroller of the Currency.

SOURCE Cetera Financial Group