LPL Financial announced its intent Wednesday to acquire Concord Capital Partners. The company provides technology and open architecture investment management products and services to trust companies and has $10 billion in assets under administration.
As a result of this acquisition, LPL Financial says it will have the ability to support both the brokerage and trust business lines of the financial institutions with which it does business. It will create wealth management solution for financial institutions that the company believes “will redefine the market.”
“It’s an adjacent market for LPL Financial; not one that we are currently in,” says Dan Arnold, divisional president and managing director for LPL Financial Institution Services. “Concord is unique in that it offers open architecture capabilities to the trust industry, which is something new and has a tremendous opportunity for growth.
Arnold says the acquisition will help expand the capabilities LPL Financial is able to offer its institutional clients. The acquisition is expected to close in the third quarter of 2011, and integration won’t be much of an issue, he says, since Concord will be a business unit of LPL Financial, but will continue to operate as a stand-alone entity and a separate technology platform.
Financial terms of the transaction were not disclosed.