LPL Financial says it has wrapped up its purchase of Allen & Co. of Lakeland, Florida, a broker-dealer and RIA with 33 employee advisors and about $3 billion of client assets. The news comes about 11 weeks after it announced the planned deal and several months earlier than it initially expected.
“We’re honored that this terrific group of advisors joined LPL,” according to LPL President & CEO Dan Arnold. “We also look forward to collaborating as we innovate on our new model that preserves the principles of independence and wraps them in employee services.”
The independent broker-dealer says the transaction’s price should represent about seven times earnings before interest, taxes, depreciation and amortization, once Allen & Co. is fully integrated into its operations.
“It is humbling to have retained our entire advisor team and all of our associates through this acquisition,” said Allen & Co. Chairman Ralph Allen, in a statement.
LPL reported plans to buy Allen & Co. on May 21. The next day, it said was adding an employee model to its offerings and boosting its 2019 technology budget to $150 million from $135 million to accommodate this and other developments.