American Portfolios Holdings Inc., a Holbrook brokerage firm whose independent financial advisers manage about $23 billion, has acquired the assets of a Massachusetts company that supplies back-office technology services to the finance industry.
American Portfolios, with 2016 revenue of about $145 million, announced last week that it had completed its acquisition of the assets of Woburn-based TrustFort LLC in the first quarter of 2017. That acquisition began in June 2015 when American Portfolios took a 34 percent equity stake in TrustFort. The initial agreement called for the acquisition to be completed over the following 36 months. Terms of the cash and stock deal were not disclosed.
TrustFort had 17 contractors in Pune, India, four contractors in Guwahati, India, and three employees who have moved from Woburn to the 45,000-square-foot Holbrook headquarters of American Portfolios, which has 101 full-time and part-time employees.
Lon Dolber, chief executive and controlling shareholder of American Portfolios, said TrustFort’s office in Woburn was closed.
“What we really wanted was the assets and intellectual property,” he said in a telephone interview. “I wasn’t interested in the corporate structure.”
American Portfolios, which describes itself as one of the largest independent broker-dealers on Long Island, furnishes services to 800 financial advisers nationwide. It offers securities trading, financial and retirement planning services and access to investment research and fee-based asset management tools. Broker-dealers facilitate customers’ securities trades with third parties or buy or sell securities from their own accounts in transactions with customers.
Dolber said having the technology assets of TrustFort allows American Portfolios to provide more services to the growing number of financial advisers who work on the basis of an annual fee instead of getting paid for each transaction.