Kingswood Acquisition said its shareholders voted unanimously in favor of merging with Wentworth Management Services, a broker-dealer aggregator.
Kingswood held just under $6.3 million in trust as of Feb. 9, according to a proxy filing. The deal also has the support of a $14.4 million PIPE plus 1.1 million sponsor shares that are to be placed into escrow.
Kingswood’s completion deadline had been Feb 24, although shareholders approved an extension to March 15.
Wentworth owns and operates 10 entities, four of which are broker-dealers, three of which are registered investment advisors, and three of which are insurance entities. Affiliated financial advisors have the optionality to choose from operating models that include a hybrid open architecture platform, independent registered status, and a W2 advisor model. The platform provides a variety of custody and clearing firms to accommodate the unique business needs of advisors.
At deal announcement in July 2022, the implied pro forma equity value of the combined company was cited at approximately $165 million, with a pro forma enterprise value of about $208 million. Read more.
