Ladenburg Allocates Up To $70 Million For Follow-Up Securities America Payments
- Created: Monday, 22 August 2011 07:53
Ladenburg Thalmann has confirmed that it will add up to $70 million to its ultimate payout to Ameriprise for buying the broker-dealer.
The additional payments will reward Ameriprise if Securities America hits various revenue targets over the next two years.
Ladenburg will pay an extra 90% of all interest income Securities America generates above a certain level: $4.5 million next year and $6.5 million in 2013.
And it will cough up 21.5% of all gross revenue the firm generates above $440 million and below $520 million next year. Additional revenue beyond that point earns a reward of 18%.
In 2013, the gross revenue targets slide up to $475 million and $555 million.
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