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February 13, 2024 at 09:10 AM
What You Need to Know
- The move could add about 2,400 advisors and $100 billion of brokerage and advisory assets to the IBD.
- LPL could receive a second payment of up to $230 million, based on retention rate.
- The firm has done several major deals in the past few years.
LPL Financial says it is buying Atria Wealth Solutions, which has about 2,400 advisors and ties to roughly 150 banks and credit unions that manage some $100 billion of brokerage and advisory assets.
The deal includes an initial payment to Atria of about $805 million and the potential for a second payment of up to $230 million, based on a retention rate of 80% to 100%, according to an investor presentation.
The deal was signed Monday and LPL expects to close the transaction in the second half of 2024, while the conversion of advisors and firms should be completed in mid-2025, subject to regulatory approval and other conditions.
Atria says its network of broker-dealers will move their brokerage and advisory assets to the LPL platform as part of the deal.
The network includes CUSO Financial Services and Sorrento Pacific Financial, which work with banks and credit unions, and Cadaret Grant, NEXT Financial Group, SCF Securities, Western International Securities and Grove Point Financial, which support independent financial professionals.
“Atria has built a great community of advisors and institutions, led by their client-centered culture,” LPL President and CEO Dan Arnold said in a statement. “We look forward to … helping them optimize their success by providing the capabilities, technology and services to differentiate and win in the marketplace and run thriving businesses.”
As of Dec. 31, LPL Financial had 22,660 advisors in its network, and the firm’s total client assets were $1.35 trillion. In 2023, its total revenue grew 17% from the prior year to $10.05 billion, while its net income jumped 26% to $1.07 billion.
“I’m excited for the opportunity that our financial advisors and institutions will have to leverage LPL’s breadth of services, vast resources and unparalleled value proposition,” said Atria CEO Doug Ketterer in a statement.
LPL estimates it could grow its asset level in the advisor channel by up to 6%, or to $1.085 trillion, and in the enterprise channel by up to 11%, or to $365 billion, through the transaction.
