LPL Financial to Acquire Commonwealth Financial Network in $2.7 Billion Deal
By Damon Elder
LPL Financial Holdings Inc. (NASDAQ: LPLA) announced today its definitive agreement to acquire Commonwealth Financial Network, the largest independently owned wealth management firm in the United States, for approximately $2.7 billion in cash. Rumors had been swirling in the industry since last week that a deal between the firms was in the works.
This strategic acquisition will add approximately 2,900 financial advisers managing around $285 billion in brokerage and advisory assets to LPL’s platform. The transaction is expected to close in the second half of 2025, with full integration anticipated by mid-2026, pending regulatory approvals and customary closing conditions.
Rich Steinmeier, chief executive officer of LPL Financial, highlighted the cultural alignment between the two firms, stating, “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.”
Joseph Deitch, founder of Commonwealth, will assume an advisory role to LPL and serve on LPL’s board of directors during the transition. Wayne Bloom, CEO of Commonwealth, will join LPL’s management team and continue to lead the Commonwealth community. He will also launch a new Office of Advisor Advocacy, which aims to enhance the service experience for LPL’s affiliated advisers.
LPL plans to finance the acquisition through a combination of corporate cash, debt, and equity, resulting in a credit agreement leverage of approximately 2.25x upon closing, with a near-term path to reduce leverage to the midpoint of its stated range of 1.5-2.5x.
This acquisition marks one of LPL’s most significant deals to date, following its recent purchase of Atria Wealth Solutions. The addition of Commonwealth’s advisers and assets is expected to bolster LPL’s position in the independent wealth management space.
The financial services industry will be closely monitoring this development, as the merger has the potential to reshape the landscape of independent wealth management firms.
Click here to visit the AltsWire directory page.
