Two independent broker-dealers, covering the East and West coast, are set to join forces, following JW Cole’s agreement to buy Financial Advisers of America.

JW Cole, which is based in Tampa, FL, will add around 400 advisors across the US and also maintain home offices in Tampa and San Diego, where FAA is based.

The deal – the value of which has not been disclosed – does not include venture capital or private equity, the firms said.

“The value of our organization could not be realized if we had chosen to partner with a mega-firm or private equity rollup option, because our rep segment of the marketplace wants to feel relevant, a part of the partnership, and not just a number to be packaged and sold," said Jodi Johnston, chief executive of FAA.

With the tie-up, JW Cole is hoping to gain a new regional advantage and greater economies of scale.

“The acquisition demonstrates the ability of smaller-sized B-Ds to adapt to the increasingly challenging landscape for firms of this size,” it said.