LPL Financial is buying rival independent broker-dealer Commonwealth Financial Network for $2.7 billion in cash, the two firms announced early Monday.
The deal unites LPL’s 28,888 financial advisors and $1.74 trillion in client assets with Commonwealth’s roughly 2,900 advisors and $285 billion in assets — resulting in a business with potentially 31,788 advisors and about $2.03 trillion in client assets.
The two parties signed the deal on Friday, expect it to close in the second half of this year and plan for Commonwealth’s advisors to be onboarded in mid-2026. "Commonwealth’s brand and service philosophy will remain [in place]," according to a statement.
On Monday, LPL's shares were trading down 2% near $329.91 as of 12:55 p.m. in New York.
“Commonwealth is respected throughout our industry as a standard-bearer for service excellence, and their commitment to the success of their advisors is embedded in all aspects of their business,” LPL CEO Rich Steinmeier said in a statement.
Commonwealth was founded in 1979 by Chairman Joe Deitch, who will serve in an advisory capacity to LPL’s board of directors. It is currently owned by a group of managing partners and is the largest privately owned independent broker-dealer in the U.S.
CEO Wayne Bloom will join LPL’s Management Committee, report to Steinmeier and continue to lead Commonwealth’s advisors, while launching an Office of Advisor Advocacy at LPL to further enhance “the service experience for LPL’s growing network of advisors,” the two firms said.
“LPL became the logical choice for our next chapter,” according to Deitch. “We are incredibly proud of the culture we’ve nurtured that leverages all opportunities for our advisors to thrive."
Commonwealth Financial is "confident that LPL’s shared commitment to advisor centricity, advocacy for advisor independence, highly experienced team and value-added offerings will serve our advisors extraordinarily well for the long term,” he added.
Early Monday, LPL said it planned to sell $1.5 billion of common stock to help pay for the Commonwealth acquisition. This news comes a few weeks after the firm announced its intent to raise $4 billion via a shelf registration, or S-3, with regulators.
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