LPL Financial to Acquire Commonwealth Financial Network
LPL Financial (NASDAQ: LPLA) has announced a definitive agreement to acquire Commonwealth Financial Network for approximately $2.7 billion in cash. Commonwealth, the largest independently owned wealth management firm in the country, supports ~2,900 independent advisors managing ~$285 billion in assets.
The acquisition brings together two industry leaders, with Commonwealth ranked #1 in Independent Advisor Satisfaction by J.D. Power for 11 consecutive times. Commonwealth's founder Joseph Deitch will assume an advisory role to LPL's Board of Directors, while CEO Wayne Bloom will join LPL's Management Committee and lead the launch of LPL's Office of Advisor Advocacy.
The transaction is expected to close in the second half of 2025, with platform conversion completion anticipated by mid-2026. LPL plans to finance the acquisition through a combination of corporate cash, debt, and equity, targeting a credit agreement leverage of 2.25x post-closing.
LPL Financial (NASDAQ: LPLA) ha annunciato un accordo definitivo per acquisire Commonwealth Financial Network per circa 2,7 miliardi di dollari in contante. Commonwealth, la più grande società di gestione patrimoniale indipendente del paese, supporta circa 2.900 consulenti indipendenti che gestiscono circa 285 miliardi di dollari in attivi.
L'acquisizione unisce due leader del settore, con Commonwealth classificata al primo posto nella soddisfazione degli advisor indipendenti da J.D. Power per 11 volte consecutive. Il fondatore di Commonwealth, Joseph Deitch, assumerà un ruolo di consulente nel Consiglio di Amministrazione di LPL, mentre il CEO Wayne Bloom entrerà nel Comitato di Gestione di LPL e guiderà il lancio dell'Ufficio di Advocacy per gli Advisor di LPL.
Si prevede che la transazione si chiuda nella seconda metà del 2025, con il completamento della conversione della piattaforma previsto per metà 2026. LPL prevede di finanziare l'acquisizione attraverso una combinazione di liquidità aziendale, debito ed equity, puntando a un accordo di credito con un leverage di 2,25x dopo la chiusura.
LPL Financial (NASDAQ: LPLA) ha anunciado un acuerdo definitivo para adquirir Commonwealth Financial Network por aproximadamente 2.7 mil millones de dólares en efectivo. Commonwealth, la mayor firma de gestión de patrimonio independiente del país, apoya a aproximadamente 2,900 asesores independientes que gestionan alrededor de 285 mil millones de dólares en activos.
La adquisición reúne a dos líderes de la industria, con Commonwealth clasificada en el puesto número 1 en Satisfacción de Asesores Independientes por J.D. Power durante 11 veces consecutivas. El fundador de Commonwealth, Joseph Deitch, asumirá un papel de asesor en la Junta Directiva de LPL, mientras que el CEO Wayne Bloom se unirá al Comité de Gestión de LPL y liderará el lanzamiento de la Oficina de Defensa del Asesor de LPL.
Se espera que la transacción se cierre en la segunda mitad de 2025, con la finalización de la conversión de la plataforma anticipada para mediados de 2026. LPL planea financiar la adquisición a través de una combinación de efectivo corporativo, deuda y capital, apuntando a un acuerdo de crédito con un apalancamiento de 2.25x después del cierre.
LPL Financial (NASDAQ: LPLA)는 Commonwealth Financial Network를 약 27억 달러에 현금으로 인수하기로 최종 합의했다고 발표했습니다. Commonwealth는 미국에서 가장 큰 독립 자산 관리 회사로, 약 2,900명의 독립 자문가가 약 2,850억 달러의 자산을 관리하고 있습니다.
이번 인수는 두 산업 리더를 결합하며, Commonwealth는 J.D. Power에서 11년 연속 독립 자문가 만족도 1위로 평가받았습니다. Commonwealth의 창립자인 Joseph Deitch는 LPL 이사회에 자문 역할을 맡고, CEO Wayne Bloom은 LPL 경영 위원회에 합류하여 LPL 자문가 옹호 사무소의 출범을 이끌 것입니다.
이번 거래는 2025년 하반기에 마감될 것으로 예상되며, 플랫폼 전환 완료는 2026년 중반으로 예상됩니다. LPL은 인수를 기업 현금, 부채 및 자본의 조합으로 자금 조달할 계획이며, 마감 후 2.25배의 신용 약정을 목표로 하고 있습니다.
LPL Financial (NASDAQ: LPLA) a annoncé un accord définitif pour acquérir Commonwealth Financial Network pour environ 2,7 milliards de dollars en espèces. Commonwealth, la plus grande société de gestion de patrimoine indépendante du pays, soutient environ 2 900 conseillers indépendants gérant environ 285 milliards de dollars d'actifs.
Cette acquisition réunit deux leaders de l'industrie, Commonwealth étant classée numéro 1 en satisfaction des conseillers indépendants par J.D. Power pendant 11 années consécutives. Le fondateur de Commonwealth, Joseph Deitch, assumera un rôle de conseiller auprès du Conseil d'Administration de LPL, tandis que le PDG Wayne Bloom rejoindra le Comité de Direction de LPL et dirigera le lancement du Bureau de Défense des Conseillers de LPL.
La transaction devrait se clôturer dans la seconde moitié de 2025, avec l'achèvement de la conversion de la plateforme prévu pour mi-2026. LPL prévoit de financer l'acquisition par une combinaison de liquidités d'entreprise, de dettes et de capitaux propres, visant un accord de crédit avec un effet de levier de 2,25x après la clôture.
LPL Financial (NASDAQ: LPLA) hat eine endgültige Vereinbarung zur Übernahme von Commonwealth Financial Network für etwa 2,7 Milliarden Dollar in bar bekannt gegeben. Commonwealth, die größte unabhängige Vermögensverwaltungsgesellschaft des Landes, unterstützt etwa 2.900 unabhängige Berater, die rund 285 Milliarden Dollar an Vermögenswerten verwalten.
Die Übernahme vereint zwei Branchenführer, wobei Commonwealth von J.D. Power 11 Jahre in Folge als Nummer 1 in der Zufriedenheit unabhängiger Berater eingestuft wurde. Der Gründer von Commonwealth, Joseph Deitch, wird eine beratende Rolle im Vorstand von LPL übernehmen, während CEO Wayne Bloom dem Managementausschuss von LPL beitreten und die Einführung des Büros für Beratervertretung von LPL leiten wird.
Der Abschluss der Transaktion wird für die zweite Hälfte des Jahres 2025 erwartet, wobei der Abschluss der Plattformumstellung für Mitte 2026 geplant ist. LPL plant, die Übernahme durch eine Kombination aus Unternehmensliquidität, Schulden und Eigenkapital zu finanzieren und strebt eine Kreditvereinbarung mit einer Hebelwirkung von 2,25x nach dem Abschluss an.
- Acquisition adds $285 billion in managed assets to LPL's portfolio
- Integration of Commonwealth's 2,900 financial advisors expands LPL's market presence
- Commonwealth's strong service reputation and #1 J.D. Power ranking enhances LPL's market position
- Clear financing structure with planned leverage reduction strategy
- Substantial $2.7 billion cash purchase price impacts financial resources
- Extended integration timeline until mid-2026 poses execution risks
- Increased leverage to 2.25x following transaction closure
- Potential advisor retention risks during transition period
Insights
LPL Financial's $2.7 billion acquisition of Commonwealth represents a strategic consolidation in the wealth management space with significant competitive implications. By incorporating Commonwealth's $285 billion in assets and ~2,900 advisors, LPL strengthens its industry position while acquiring a service excellence leader.
This transaction follows the broader wealth management consolidation trend, with LPL strategically focusing on quality over merely accumulating assets. Commonwealth's 11 consecutive J.D. Power #1 rankings highlight exceptional advisor satisfaction – precisely the type of high-quality business LPL needs to enhance its competitive positioning against wirehouses and other independent networks.
The decision to maintain Commonwealth's brand identity demonstrates pragmatic thinking, preserving the established goodwill and advisor relationships that constitute much of the acquired value. The extended timeline (closing in 2H 2025, conversion in mid-2026) provides adequate runway for careful integration planning, though it also creates a prolonged period of potential advisor uncertainty.
The integration of Commonwealth's leadership team into LPL's management structure, particularly Wayne Bloom joining the Management Committee and helping create the Office of Advisor Advocacy, signals commitment to preserving Commonwealth's service culture. This governance structure thoughtfully addresses the primary risk in wealth management acquisitions: advisor retention during transition periods.
At $2.7 billion, LPL is paying approximately 0.95% of Commonwealth's $285 billion in managed assets – a reasonable valuation multiple for a premium wealth management acquisition with strong advisor satisfaction metrics. The transaction structure – 100% cash with a blend of corporate cash, debt, and equity financing – offers implementation flexibility while balancing shareholder interests.
The projected post-acquisition leverage ratio of 2.25x remains within LPL's stated target range of 1.5-2.5x, with management indicating a clear path to reducing leverage toward the midpoint. This conservative financial approach minimizes balance sheet risk while enabling strategic expansion. The firm's multi-source financing strategy (cash, debt, equity) demonstrates prudent capital management, preventing excessive dilution or leverage.
The extended timeline between announcement, closing (2H 2025), and full platform conversion (mid-2026) creates predictable financial planning horizons but also extends the period of operational redundancy costs. This deliberately measured approach prioritizes retention over immediate cost synergies, appropriate given that advisor relationships constitute the primary acquisition value.
LPL's evaluation of Commonwealth's capabilities developed with Advisor360° signals potential technology synergies beyond the immediate acquisition value. While specific accretion projections weren't disclosed, the transaction's scale relative to LPL's $1.7 trillion in assets suggests meaningful but manageable integration costs with long-term growth potential.
- Commonwealth supports ~2,900 independent advisors managing ~
$285 billion in assets - Commonwealth ranked #1 in Independent Advisor Satisfaction 11 times in a row by J.D. Power
- Founder of Commonwealth to assume advisory role to LPL Board of Directors
- Commonwealth CEO to join LPL Management Committee, partnering to launch Office of Advisor Advocacy
SAN DIEGO and WALTHAM, Mass., March 31, 2025 (GLOBE NEWSWIRE) -- LPL Financial Holdings Inc. (NASDAQ: LPLA) (together with its subsidiaries, including LPL Financial LLC, “LPL Financial” or “LPL”) today announced that it has entered into a definitive purchase agreement to acquire Commonwealth Financial Network (“Commonwealth”), the largest independently owned wealth management firm in the country.
Headquartered in Waltham, Mass., Commonwealth provides integrated business solutions and services for approximately 2,900 financial advisors, managing approximately
“Commonwealth is respected throughout our industry as a standard-bearer for service excellence, and their commitment to the success of their Advisors is embedded in all aspects of their business,” said Rich Steinmeier, LPL Financial chief executive officer. “A complement to LPL’s client-centric culture, Commonwealth’s service philosophy enhances the value we’ll collectively bring to all Advisors across the LPL network. In addition, LPL’s advanced technology, intuitive business solutions and breadth of wealth management offerings unlock boundless potential for Commonwealth Advisors and the clients they serve.”
“As we’ve grown our business over the past 46 years, Commonwealth has placed a premium on delivering the industry’s highest standards of service. We’ve been diligent in finding a partner that shares our mission of prioritizing Advisor needs above all else. LPL became the logical choice for our next chapter,” said Joseph Deitch, Commonwealth founder, who will assume an advisory role to LPL’s Board of Directors through the conversion. “We are incredibly proud of the culture we’ve nurtured that leverages all opportunities for our Advisors to thrive. To continue supporting this mission, we are confident that LPL’s shared commitment to Advisor centricity, advocacy for Advisor independence, highly experienced team and value-added offerings will serve our Advisors extraordinarily well for the long-term.”
Commonwealth Chief Executive Officer Wayne Bloom will join LPL’s Management Committee and report to Mr. Steinmeier, and will continue to lead the Commonwealth community and their advisor experience. He will also partner with the LPL leadership team to launch LPL’s Office of Advisor Advocacy, charged with further elevating the service experience for LPL’s growing network of advisors. “This impressive partnership accelerates our joint competitive advantage, bringing unparalleled value to our Advisors and our employees,” said Bloom. “Commonwealth will retain its brand as part of LPL, and Commonwealth Advisors will continue to benefit from their relationships with our team members, all while taking full advantage of LPL’s scale and platform that fuels its industry-leading offerings.”
The transaction is expected to close in the second half of 2025, and the conversion to the LPL platform is expected to be completed in mid-2026, subject to the receipt of regulatory approvals and other conditions. Following the closing, LPL will evaluate opportunities to bring the Commonwealth advisor experience into the broader LPL ecosystem, including the review of key capabilities at Commonwealth that have been developed in partnership with Advisor360°.
Under the transaction structure, LPL will acquire 100 percent of the equity of the holding company of Commonwealth for a purchase price of approximately
Investor Presentation
LPL Financial posted an investor presentation with an overview of the transaction on its Investor Relations page at investor.lpl.com.
Conference Call and Additional Information
The Company will hold a conference call to discuss the transaction at 8 a.m. ET on Monday, March 31, 2025. The conference call will be accessible and available for replay at investor.lpl.com/events.
Financial and Legal Advisors to the Transaction
Morgan Stanley & Co. LLC is acting as exclusive financial advisor to LPL, with Allen Overy Shearman Sterling LLP serving as LPL’s legal counsel. Goldman Sachs & Co. LLC is acting as exclusive financial advisor to Commonwealth, with Ropes & Gray LLP serving as Commonwealth’s legal counsel.
About Commonwealth Financial Network®
Commonwealth Financial Network, Member FINRA/SIPC, a Registered Investment Adviser, provides financial advisors with holistic, integrated solutions that support business evolution, growth acceleration, and operational efficiency. J.D. Power ranks Commonwealth “#1 in Independent Advisor Satisfaction Among Financial Investment Firms, 11 Times in a Row.” Privately held since 1979, the firm has headquarters in Waltham, Massachusetts, and San Diego, California, and an operations hub in Blue Ash, Ohio.
About LPL Financial
LPL Financial Holdings Inc. (Nasdaq: LPLA) is among the fastest growing wealth management firms in the U.S. As a leader in the financial advisor-mediated marketplace, LPL supports nearly 29,000 Financial Advisors and the wealth management practices of approximately 1,200 financial institutions, servicing and custodying approximately
Securities and advisory services offered through LPL Financial LLC, a registered investment advisor and broker-dealer, member FINRA/SIPC.
Throughout this communication, the terms “financial Advisors” and “Advisors” are used to refer to registered representatives and/or investment advisor representatives affiliated with LPL Financial LLC and Commonwealth. Unless otherwise indicated, data in this communication is as of December 31, 2024.
We routinely disclose information that may be important to shareholders in the “Investor Relations” or “Press Releases” section of our website.
Forward-Looking Statements
Certain of the statements included in this release, such as those regarding LPL Financial and its potential growth, business strategy and plans, including the expected benefits of LPL Financial’s acquisition of Commonwealth, the timing of the closing and the conversion of such transaction, and LPL Financial’s plans to replicate the Commonwealth Advisor service experience within its ecosystem, constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Words such as “expects,” “believes,” “anticipates,” “plans,” “assumes,” “estimates,” “projects,” “intends,” “should,” “will,” “shall” or variations of such words are generally part of forward-looking statements. Forward-looking statements are made based on current expectations and beliefs concerning future developments and their potential effects upon LPL, Commonwealth or both. In particular, LPL Financial can provide no assurance that the assets reported as serviced by Commonwealth financial Advisors will translate into assets serviced at LPL Financial, that Commonwealth financial Advisors will join LPL Financial or that the benefits that are expected to accrue to LPL Financial, Commonwealth and their respective advisors and stockholders as a result of the transaction described herein will materialize. These forward-looking statements are not a guarantee of future performance and involve risks and uncertainties, including economic, legislative, regulatory, competitive and other factors, and there are certain important factors that could cause actual results or the timing of events to differ, possibly materially, from expectations or estimates expressed or implied in such forward-looking statements. Important factors that could cause or contribute to such differences include: the failure of the parties to satisfy the closing conditions applicable to the acquisition in a timely manner or at all, including obtaining the required regulatory approvals; disruptions to the parties’ businesses as a result of the announcement and pendency of the transaction; difficulties or delays of LPL Financial in onboarding Commonwealth financial Advisors, staff or clients, which could negatively affect LPL Financial’s ability to realize revenue or expense synergies or other expected benefits of the transaction; the inability of LPL Financial to sustain revenue and earnings growth or to fully realize revenue or expense synergies or the other expected benefits of the transaction, which depend in part on LPL Financial’s success in onboarding assets currently served by Commonwealth’s Advisors; disruptions to Commonwealth’s or LPL Financial’s businesses due to transaction-related uncertainty or other factors making it more difficult to maintain relationships with their financial Advisors and their clients, employees, other business partners or governmental entities; the choice by clients of Commonwealth’s Advisors not to open brokerage and/or advisory accounts at LPL Financial or move their assets from Commonwealth to LPL Financial; challenges replicating the Commonwealth Advisor service experience at LPL Financial; changes in general economic and financial market conditions, including retail investor sentiment; fluctuations in the value of assets under custody; and Commonwealth’s Advisors. Certain additional important factors that could cause actual results or the timing of events to differ, possibly materially, from expectations or estimates expressed or implied in such forward-looking statements can be found in the “Risk Factors” section included in LPL Financial’s most recent Annual Report on Form 10-K. Except as required by law, LPL Financial does not undertake to update any particular forward-looking statement included in this document as a result of developments occurring after the date of this press release.
Contacts
LPL Media Relations
media.relations@lplfinancial.com
LPL Investor Relations
investor.relations@lplfinancial.com
FAQ
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