Ladenburg Thalmann Financial has signed a definitive agreement to acquire Triad Advisors, an independent broker-dealer and investment advisor.

According to the company, the initial consideration at closing will be $7.5 million in cash and $12.5 million in Ladenburg common stock, which will be subject to transfer restrictions. In addition, the sellers will receive $2 million in Ladenburg common stock as reimbursement for Triad’s net worth of approximately $3.5 million and $5 million in cash over a three-year period.

In the event that certain profit targets are met during the three-year period following closing, Ladenburg will also pay up to $15 million to the sellers, half of which would be payable in Ladenburg common stock. The number of Ladenburg shares to be issued in the acquisition will be determined based on a price of $1.814 per Ladenburg share.

The transaction, expected to close in the third quarter of 2008, is subject to customary closing conditions, including approval from The Financial Industry Regulatory Authority.

Richard Lampen, president and CEO of Ladenburg, said: We are pleased to add the profitable and well-run Triad business to Ladenburg, providing us with a more predictable income stream to balance our capital markets business.