Document Security Systems (DSS) has acquired 24.9% of broker-dealer Sentinel Brokers Company, with option to buy additional 50.1% stake in the firm.
The deal, whose financial terms have not been disclosed, is aimed at expanding the company’s securities business, DSS Securities.
DSS CEO Frank Heuszel said that owning a broker-dealer will help the company accelerate its plans to build out an ecosystem around this high-growth, high-return potential segment of its operations.
Founded by Joseph Lawless in 1996, Sentinel primarily operates as a financial intermediary. It facilitates institutional trading of municipal and corporate bonds as well as preferred stock.
Commenting on the deal, Lawless said: “As Sentinel celebrates our 25th anniversary this year, it’s exciting to engage a synergistic strategic partner the calibre of DSS that has tremendous vision and resources giving it the ability to capitalise on a wealth of opportunities.”
DSS COO Jason Grady referred to the deal as a great opportunity to accelerate the trajectory of the company’s digital securities business.
Grady added: “We plan to continue to invest qualified ventures as opportunities warrant, effectively allocating the capital we have available to drive growth and maximize returns.”
DSS Securities completed its acquisition of 24.9% of Sentinel through its wholly owned subsidiary, Sentinel Broker.
US-based DSS operates business segments in direct marketing, blockchain security, consumer packaging, real estate, healthcare, renewable energy, and securitised digital assets.
In February this year, the company invested in WestPark Capital and BMI Capital International in line with strategic goal to build out DSS Securities.
