Together, Rydex and Security Benefit will work with over 40,000 brokers, but they want access to more. In a media conference call this morning, Rydex CEO Carl Verboncouer and Security Benefit chairman, CEO and president Kris Robbins shed light on their intentions for their shared future, after a deal that Verboncouer said was "six to eight months" in the making. (See "Rydex Says Yes to Security Benefit" and "The Rydex Sale: Anatomy of a Story" for more on the deal.)

Verboncouer anticipates gaining "new distribution opportunities" from the partnership. He cited both's firms' strength "in the independent broker-dealer space" as something to build on, but added that they're looking to wirehouses and regional BDs, too.

"The marketplace is so much broader [than just independent BDs]," Verboncouer said in a media conference call. "We're raising the bar in terms of getting on the recommended lists."

Robbins added that Security Benefit already has "about 22,000 broker relationships and several broker-dealer relationships," and that the deal will nearly double that number, thanks to "very little overlap" in the two firms' existing distribution.

"The combination should put us at over 40,000 reps to work with," Robbins said. "Our plan is to expand Rydex distribution into new markets."

Distribution isn't the only thing on the tip of the deal-makers' tongues. Both Verboncouer and Robbins also talked about designing new products, particularly for the defined contribution marketplace. (See "Rydex Acquirer Leads the Fund Firm to DC Plans" on our subscription-only sister publication, 401kWire, for more on Rydex and Security Benefit's DC efforts.)

Both executives stressed that major restructurings are not in store for either firm.

"The business models of both companies work well, so don't change them," Robbins confirmed, adding that Verboncouer will report directly to him. "We fully expect today's management and key personnel will remain."

Robbins added that Security Benefit's existing 1,000-plus employee count "will hold, and probably move ahead." And Verboncouer revealed that, on his end, shakeups aren't in the plan for Rydex's 200-plus employees, either.

"We're staying intact here in Rockville, [Maryland], in the same building," Verboncouer said.

On the sale itself, Verboncouer confirmed that the whole process began as an effort by the Viragh family to "diversify their holdings a bit," and that, as the MFWire revealed in April (see "Rydex' Sale: Will the Best Man Win?", April 9, 2007), Goldman Sachs advised the family on the deal. Verboncouer and Robbins both declined to comment on the terms of the deal and the identity of any other bidders. 

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