LPL Financial has acquired Blaze Portfolio, the maker of portfolio trading and rebalancing tools that the independent broker-dealer plans to integrate into its advisor platform and offer to other industry players.
The IBD, which inked the deal Monday, paid $12 million up front and agreed to a possible extra payment of up to $5 million “subject to milestones and customary purchase price adjustments,” it said.
In addition to giving its advisors trading capabilities, the transaction lets LPL sell Blaze Portfolio’s products and services to other members of the wealth management industry. The IBD also said it plans to keep “the talented team of employees who will continue to evolve and expand the Blaze Portfolio technology offering.”
News of the Blaze deal comes nearly two years after the IBD paid $28 million for AdvisoryWorld, which helps LPL-affiliated and other advisors with proposals for prospective clients, investment analytics and portfolio construction.
“For many advisors, our trading platform is their lifeblood, and the way they express and execute their investment strategies for their clients in a sophisticated way,” LPL Chief Investment Officer Burt White explained in a statement.