On the heels of its filing for a $600 million stock offering, LPL Financial Corp. announced July 14 an agreement to acquire California-based retirement plan specialist National Retirement Partners Inc. (NRP), which will form a new division called LPL Financial Retirement Partners.
NRP’s CEO, president, and founder, Bill Chetney, will lead the new division upon completion of the transaction. The transaction is expected to close in the fourth quarter of 2010.
Financial terms of the transaction were not disclosed, and company officials declined to comment.
“With the filing of its S-1 registration statement, LPL Financial is in a quiet period. Accordingly, we have no comment beyond our public filing,” a spokesperson for LPL Financial said.
LPL Holdings Inc., LPL’s parent company, filed an S-1 statement with the SEC on June 4 to go public via an estimated $600 million stock offering. The nation’s largest independent broker/dealer, LPL serves over 12,000 financial advisors and has 2,500 employees in its Boston, Charlotte, and San Diego offices.
The company has seen notable growth over the last few years, especially with the acquisition of three broker/dealers from Pacific Life in 2007. The National Retirement Partners acquisition strengthens the link to Pacific Life. NRP Chairman William Cvengros was Pacific Life’s vice chairman and chief investment officer prior to joining PIMCO, where he served as CEO of PIMCO Advisors L.P., a publicly-traded asset management firm with over $300 billion of assets under management sold to Allianz AG in 2000. Cvengros joined NRP in an advisory capacity in 2005 and has served as chairman since December 2005, with responsibility for overall strategic direction and corporate strategy.