Kingswood Acquisition plans to merge with broker-dealer aggregator Wentworth Management Services.
KWAC and Wentworth will become wholly-owned subsidiaries of Binah Capital Group. The combined entity is expected to encompass over 1,900 advisors, $25 billion AUM and over $285 billion in affiliated AUM.
The business combination is projected to generate approximately $30 million, assuming no redemptions and an anticipated $15 million capital raise, which will be used to pay transaction expenses and provide growth capital for the business. The implied pro forma equity value of the combined company is expected to be approximately $165 million, with a pro forma enterprise value of approximately $208 million.
The transaction is expected to close in the fourth quarter, pending shareholder and regulatory approvals.
Oppenheimer & Co. is serving as financial advisor to Kingswood, with SPAC Advisory Partners serving as capital markets advisor. Shearman and Sterling is serving as legal advisor to the SPAC.
McDermott Will & Emery is legal counsel to Wentworth. Read more.
