LPL Financial says it is buying Lucia Securities, a San Diego-based wealth group with about 20 advisors and $1.5 billion of client assets under management.
The deal has been structured as an asset purchase agreement, which includes a payment at closing (expected by year-end) and potential contingency payments, according to LPL. It is valued at roughly six times post-merger earnings before interest, taxes, depreciation and amortization (or EBITDA.)
“We are honored and excited to have this terrific group of experienced advisors joining LPL,” said Rich Steinmeier, head of Business Development for LPL, in a statement.
Lucia Securities is now led by Ray Lucia Jr., who sees the firm’s wealth platform, “enhanced with LPL’s culture, technology and capabilities, [as] provid[ing] the ideal environment for our financial advisors to exceed clients’ expectations,” according to a statement.