August 15, 2017 / 9:10 PM / 2 years ago

LPL Financial acquires indie broker dealer with 3,400 advisers

NEW YORK, Aug 15 (Reuters) - The largest U.S. independent broker dealer, LPL Financial, said Tuesday it acquired National Planning Holdings, another independent broker dealer, with around 3,200 affiliated financial advisers.

The deal is structured as an asset purchase, and will initially cost LPL $325 million, according to a press release.

Advisers on National’s network had around 1.5 million customer accounts and $120 billion in assets under management as of July.

LPL will make an additional contingency payment in the first half of 2018 of between $0 and $123 million, depending on how much of National’s business moves over to LPL’s platform.

LPL plans to take on National’s advisers and clients in two waves. If less than 72 percent of National’s business moves over to LPL, the broker-dealer will pay no additional contingency, according to the press release.

LPL said it expects on-boarding costs of around $40 million to $60 million.

Both LPL and National provide support for independent advisers, including technology, research and compliance services. LPL has more than 14,000 affiliated advisers in the United States.

Reporting By Elizabeth Dilts; Editing by Dan Grebler

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below