LPL Financial to acquire rival Commonwealth Financial Network for about $2.7 bln in cash (updated)

LPL Financial Holdings

31/03/2025 11:29

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March 31 (Reuters) - Wealth management firm LPL Financial Holdings LPLA.O said on Monday it would acquire the privately held investment adviser Commonwealth Financial Network for about $2.7 billion in an all-cash transaction.

Shares of LPL Financial were down 2.6% in premarket trading.

The deal would give LPL control of around $285 billion of brokerage and advisory assets managed by Commonwealth.

LPL, considered one of the largest brokerages in the U.S., has been buying its rivals to expand its footprint in the wealth management industry. Last year, it acquired brokerage firm Atria Wealth Solutions for about $800 million.

It plans to acquire 100 percent of the equity of Commonwealth, and expects to finance it through a combination of corporate cash, debt and equity.

Commonwealth's CEO Wayne Bloom would join LPL's management committee, while its founder Joseph Deitch will take on an advisory role to the LPL Board, the company said.

LPL in a separate statement said it has commenced an underwritten public offering of $1.5 billion of its common stock.

The wealth management firm serves nearly 29,000 financial advisors and is a custodian to about $1.7 trillion in brokerage and advisory assets.

 (Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by Vijay Kishore)

 ((JaiveerSingh.Shekhawat@thomsonreuters.com;))