- Effective December 2, 2019, Siebert acquired Weeden Prime, a
leading prime brokerage services provider, for a total purchase
price of approximately $7.1 million in cash
- Weeden Prime has generated approximately $12-14 million in
annual revenue
- Through its acquisition of Weeden Prime, Siebert will gain
approximately $1.5 billion in assets under management, two branch
offices and 25 employees
Siebert Financial Corp. (NASDAQ:SIEB) (“Siebert”), a provider of
financial services, today announced the completion of the
acquisition of Weeden Prime Services, LLC (“Weeden Prime”), a
leading prime brokerage services provider. The acquisition was
effective on December 2, 2019, and Weeden Prime will be a
wholly-owned subsidiary of Siebert.
The acquisition of Weeden Prime will provide a new customer base
of institutional clients as well as several strategic clearing
relationships. Weeden Prime’s technology, including their Armor
solution, will be added to Siebert’s technology portfolio.
In addition, there are substantial cross selling opportunities
for the institutional and retail clients, including partnering with
institutional clients to generate new product offerings for the
retail clients. The addition of Weeden Prime will bring economies
of scale in terms of operational and administrative functions as
well as a skilled management team to Siebert.
Gloria E. Gebbia, controlling shareholder and board member of
Siebert, commented on the completion of the acquisition saying, “We
are excited to have the Weeden Prime team officially on board and
are looking forward to achieving the benefits of the combined
company. Combining Siebert’s and Weeden Prime’s complementary
business lines creates a powerful and dynamic company able to meet
the needs of a rapidly changing market.“
Andrew Formato, the President of Weeden Prime, said, “The entire
team at Weeden Prime is excited to combine with the Siebert family
and build on the strength of both of our respective firms. With
Siebert’s strong positioning in the marketplace and our shared
vision, we look forward to growing our business for the
future.”
Andrew Reich, CFO of Siebert, commented on the transaction
saying, “We are very excited about the financial benefit this
transaction will deliver to Siebert. Currently, Weeden Prime
generates approximately $12-14 million in annual revenue and it has
achieved significant organic growth over the past few years. By
integrating Weeden Prime into the Siebert infrastructure, we will
be well positioned to continue that growth as well as achieve
significant economies of scale. We are excited for the future of
Siebert and capitalizing on the opportunities ahead.”
Notice to Investors
This communication is provided for informational purposes only
and is neither an offer to sell nor a solicitation of an offer to
buy any securities in the United States or elsewhere.
About Siebert Financial Corp.
Siebert Financial Corp. is a holding company that conducts its
retail brokerage business through its wholly-owned subsidiary,
Muriel Siebert & Co., Inc., which became a member of the New
York Stock Exchange (“NYSE”) in 1967 when Ms. Siebert became the
first woman to own a seat on the NYSE and the first to head one of
its member firms. The company conducts its investment advisory
business through its wholly-owned subsidiary, Siebert AdvisorNXT,
Inc., a registered investment advisor, and its insurance business
through its wholly-owned subsidiary, Park Wilshire Companies, Inc.,
a licensed insurance agency. Siebert’s fourth wholly-owned
subsidiary, Siebert Technologies, LLC., is a developer of
robo-advisory technology. Siebert is headquartered in New York City
with 13 offices throughout the continental U.S. Siebert is under
common control with StockCross Financial Services, Inc. More
information is available at www.siebertnet.com.
About Weeden Prime Services, LLC
Weeden Prime is a technology-powered prime brokerage business
focused on providing institutional quality services to hedge funds
and family offices. With a focus on capital raising and
cutting-edge technology, Weeden Prime has successfully created an
ideal platform which clients can leverage in seeking to grow their
businesses. Weeden Prime offers a comprehensive global platform
that includes dynamic proprietary risk management and analytics
technology (“Armor”), institutional equity, outsourced trading,
automated allocation technology and sophisticated portfolio
reporting. More information is available at
www.weedenprime.com.
Cautionary Note Regarding Forward-Looking Statements
The statements contained in this press release that are not
historical facts, including statements about our beliefs and
expectations, are “forward-looking statements” within the meaning
of the U.S. Private Securities Litigation Reform Act of 1995.
Forward-looking statements include statements preceded by, followed
by or that include the words “may,” “could,” “would,” “should,”
“believe,” “expect,” “anticipate,” “plan,” “estimate,” “target,”
“project,” “intend” and similar words or expressions. In addition,
any statements that refer to expectations, projections, or other
characterizations of future events or circumstances are
forward-looking statements.
These forward-looking statements, which reflect our management’s
beliefs, objectives, and expectations as of the date hereof, are
based on the best judgment of our management. All forward-looking
statements speak only as of the date on which they are made. Such
forward-looking statements are subject to certain risks,
uncertainties and assumptions relating to factors that could cause
actual results to differ materially from those anticipated in such
statements, including, without limitation, the following: economic,
social and political conditions and other securities industry
risks; interest rate risks; liquidity risks; credit risk with
clients and counterparties; risk of liability for errors in
clearing functions; systemic risk; systems failures, delays and
capacity constraints; network security risks; competition; reliance
on external service providers; new laws and regulations affecting
our business; net capital requirements; extensive regulation,
regulatory uncertainties and legal matters; failure to maintain
relationships with employees, customers, business partners or
governmental entities; the inability to achieve synergies or to
implement integration plans and other consequences associated with
risks and uncertainties detailed in our filings with the SEC,
including our most recent filings on Forms 10-K and 10-Q.
The forward-looking statements contained herein speak only as of
the date on which the statements were made. We caution that the
foregoing list of factors is not exclusive, and new factors may
emerge, or changes to the foregoing factors may occur, that could
impact our business. We undertake no obligation to publicly update
or revise these statements, whether as a result of new information,
future events or otherwise, except to the extent required by the
federal securities laws.
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version on businesswire.com: https://www.businesswire.com/news/home/20191204005297/en/
Siebert Financial Corp. 120 Wall Street New York, NY 10005
Investor Relations: Siebert Financial Corp. John T. Gebbia (310)
432-2196
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