LPL Financial Strikes $2.7B Deal to Acquire Commonwealth
LPL Financial Holdings Inc., the largest independent broker-dealer in the U.S., announced an agreement to acquire Commonwealth Financial Network, a Waltham, MA-based wealth management firm, for approximately $2.7 billion through a mix of cash, debt and equity.
This blockbuster deal unites two major players in the independent advisory space, with Commonwealth bringing 2,900 independent advisors and $285 billion in brokerage and advisory assets to LPL’s platform, which already supports nearly 29,000 advisors and manages $1.7 trillion in assets.
“A complement to LPL’s client-centric culture, Commonwealth’s service philosophy enhances the value we’ll collectively bring to all Advisors across the LPL network,” said Rich Steinmeier, LPL CEO.
Commonwealth, founded in 1979 by Joseph Deitch, has long been celebrated for its advisor-centric culture. Post-acquisition, Deitch will transition to an advisory role on LPL’s Board of Directors, while CEO Wayne Bloom, who succeeded Deitch in 2009, will join LPL’s management committee and spearhead a new Office of Advisor Advocacy.
LPL plans to finance the acquisition using a mix of corporate cash, debt, and equity, targeting a leverage ratio of 2.25x post-closing, with intentions to reduce it to 1.5x to 2.5x in the near term. The deal, set to close in the second half of 2025, will see Commonwealth advisors fully transition to LPL’s platform by mid-2026.
According to an SEC filing on Monday, LPL noted it was offering $1.5 billion in shares of common stock to help fund the transaction, giving underwriters a 30-day option to purchase up to $225 million shares at the public price, less an underwriting discount.
This move follows LPL’s recent acquisition spree, including the $100 billion-managing Atria Wealth Solutions in February 2024 and The Investment Center, a NJ-based firm with $9 billion in assets under management, in September 2024.
The deal is one of LPL’s largest acquisitions and will push LPL’s advisor head count above 30,000 across $1.7 trillion in assets.
Morgan Stanley & Co. LLC is acting as exclusive financial advisor to LPL, with Allen Overy Shearman Sterling LLP serving as LPL’s legal counsel. Goldman Sachs & Co. LLC is acting as exclusive financial advisor to Commonwealth, with Ropes & Gray LLP serving as Commonwealth’s legal counsel.