LPL Financial snaps up Atria Wealth Solutions for $805m
LPL Financial has announced its acquisition of Atria Wealth Solutions, a wealth management solutions holding company headquartered in New York City, USA.
LPL Financial to acquire Atria Wealth Solutions
Founded in 1989 and claiming to be the largest independent broker-dealer in the USA, LPL Financial provides a wide range of financial services to independent advisors and financial institutions, including brokerage and advisory platforms, technology solutions, investment services and compliance support.
In a push to increase its scale and capacity, the firm signed a deal on 12 February to acquire 100% of the equity of Atria for an upfront cost of $805 million through a combination of cash and debt, according to a notice posted to LPL Financial’s investors.
Supporting around 2,400 advisors and 150 banks and credit unions across the USA, Atria provides investment management, financial and retirement planning, insurance and other wealth management solutions through a network of seven broker-dealer subsidiaries.
These subsidiaries include CUSO Financial Services and Sorrento Pacific Financial, which support credit unions and banks specifically, and Cadaret Grant, NEXT Financial Group, SCF Securities, Western International Securities and Grove Point Financial, which together support independent financial professionals.
All of these units will now move under the umbrella of LPL Financial with the transaction set to close in H2 2024, while Atria’s advisors and client assets will migrate to the LPL Financial platform by “mid-2025”.
LPL anticipates the onboarding and integration costs of this move at between $300 million and $350 million, but hopes to achieve an estimated run-rate EBITDA accretion of around $140 million when completed.
The investor notice pinpoints the strategic rationale behind the move as an attempt to increase LPL Financial’s “scale and capacity to invest in capabilities, technology and service to help existing advisors serve their clients and differentiate in the marketplace”.
