RCS Capital (RCAP), Nicholas Schorsch’s firm that has been building an independent broker/dealer network, struck a deal to acquire a majority interest in Docupace Technologies, which provides electronic processing and document management for financial services firms. The terms of the transaction were not disclosed.
With the acquisition, RCS’s 11 broker/dealers and 9,700 advisors will have access to Docupace’s straight-through processing platform, ePACS, and client on-boarding and document storage tools.
RCAP President Michael Weil said the deal will also provide another source of revenue for the firm.
Schorsch, executive chairman of RCAP, made his initial foray into the independent broker/dealer space with his purchase of First Allied Securities and The Legend Group, with 1,500 advisors, in June 2013. Since then, Schorsch has been on an acquisition tear, shocking the industry with the number of deals he’s penned, Girard Securities being the most recent acquisition.
After months of uncertainty over how RCS Capital Corp. would structure its recently acquired independent broker/dealers, the firm announced plans in August to bring them all under Cetera Financial Group.
Under the new structure, each firm would keep their current brands, senior management, and other advisor-facing employees. But back-office and middle-office functions will be centralized.
Michael Pinsker will continue to run Los Angeles-based Docupace as president and CEO.