LPL Financial, the largest independent broker-dealer in the United States, has announced its plans to acquire Atria Wealth Solutions, a prominent wealth management company. With approximately 2,400 advisors and 150 banks and credit unions under its support, Atria manages an impressive $100 billion of brokerage and advisory assets.
The Deal
LPL Financial has agreed to pay an upfront price of $805 million to acquire 100% of Atria Wealth Solutions. The acquisition will be financed through a combination of cash and debt. Additionally, there may be an additional payment of up to $230 million based on retention.
Consolidation in the Broker-Dealer Sector
This acquisition is in line with the ongoing trend of consolidation within the broker-dealer sector. Large firms, such as LPL Financial, have been acquiring smaller competitors to strengthen their market presence. Last year, Atria Wealth Solutions itself acquired broker-dealer Grove Point from Kestra Holdings.
Expanding Reach and Resources
The acquisition not only adds to LPL Financial's assets and number of advisors, but it also expands the company's reach with enterprise clients. Atria operates a network of seven broker-dealers, two of which—CUSO Financial Services and Sorrento Pacific Financial—provide wealth management platforms and investment services to banks and credit unions.
Atria's Broker-Dealer Units
In addition to its enterprise-focused broker-dealers, Atria also provides support to independent financial advisors through its other units: Cadaret Grant, NEXT Financial Group, SCF Securities, Western International Securities, and Grove Point Financial.
With this significant acquisition, LPL Financial aims to solidify its position as a leader in the wealth management industry while broadening its range of services and clientele.
Atria Wealth Solutions Joins Forces with LPL Financial
Atria Wealth Solutions and LPL Financial have announced a strategic partnership, strengthening Atria's capabilities and resources in the wealth management industry.
New York, NY - Atria Wealth Solutions, founded in 2017, has recently formed a pivotal alliance with LPL Financial - a leading wealth management company. This collaboration will enable Atria's advisors to leverage LPL's extensive set of capabilities and cutting-edge technology.
The deal, expected to close in the second half of 2024 pending regulatory approval and fulfillment of other conditions, will see Atria transitioning its brokerage and advisory assets to the LPL platform by mid-2025.
Furthermore, this acquisition is anticipated to deliver an impressive annual Ebitda benefit of around $140 million. As a reflection of this exciting development, LPL stock witnessed a 0.5% dip in pre-market trading, while remaining up 10.5% year-to-date.
Atria Wealth Solutions CEO, Doug Ketterer, expressed enthusiasm for the partnership, affirming its potential to unlock new opportunities for Atria advisors through enhanced capabilities and abundant resources.
LPL Financial boasts a robust growth trajectory, solidifying its position as one of the country's largest wealth management firms. With advisory and brokerage assets totaling $1.35 trillion as of December 31, representing a remarkable 22% year-over-year increase, LPL has gained ground through strategic acquisitions and successful recruitment efforts.
In 2021, LPL's acquisition of Waddell & Reed's wealth management business added approximately 900 advisors overseeing more than $71 billion in assets to its ranks. Last year, the company also revealed plans to acquire Crown Capital Securities, which boasts 260 advisors managing approximately $6.5 billion in advisory and brokerage assets.
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