US-based Ladenburg Thalmann Financial Services has purchased Highland Capital Brokerage, an independent insurance brokerage company that offers life insurance, annuities and long-term care solutions, for nearly $42m in a mixture of cash and equity.

Highland delivers specialized point-of-sale support together with advanced marketing and creative estate and business planning techniques, delivering customized insurance solutions to both institutional clients and independent producers.

Ladenburg board chairman and principal shareholder Dr Phillip Frost said: "The acquisition of Highland marks Ladenburg’s entrance into the wholesale life insurance marketplace and reflects our commitment to building a strong, diversified financial services organization."

Highland noted that the company will get benefit from Ladenburg’s resources as an established public company, supporting the subsidiary’s growth according to its existing vision and business model.

The deal will help Highland in hiring additional senior sales professionals, accelerating technology and infrastructure upgrades, providing greater training and development for its sales teams, and capitalizing on opportunities in new markets.

Ladenburg president and CEO Richard Lampen said: "We are committed to building a partnership with Highland’s management and principals to accelerate the firm’s growth and amplify their culture.

"This acquisition marks an important step in our expansion into this higher-margin, attractive wholesale distribution channel."

The takeover of Highland will provide Ladenburg’s independent advisors — affiliated through subsidiaries Securities America, Triad Advisors and Investacorp, with better access to high-quality insurance solutions, enhancing the products and services they can deliver to their clients.

Graubard Miller acted as legal counsel for Ladenburg in the transaction, and Sirote & Permutt, PC served as legal counsel for Highland.