Nasdaq-listed LPL Financial has signed an all-cash deal worth around $2.7bn to acquire Commonwealth Financial Network, a US-based independently owned wealth management firm.
Commonwealth Financial Network is headquartered in Waltham, Massachusetts. Founded in 1979, the company supports around 2,900 financial advisers and manages approximately $285bn in brokerage and advisory assets.
Based in California, LPL Financial is also a wealth management firm. Within the financial advisor-mediated marketplace, the company is said to provide support to nearly 29,000 financial advisers and manages the wealth management operations of around 1,200 financial institutions.
The firm services and holds approximately $1.7 trillion in brokerage and advisory assets for about six million Americans.
Under the terms of the agreement, LPL Financial will secure 100% equity of Commonwealth Financial Network’s holding company.
The acquisition will be funded through a combination of corporate cash, debt, and equity. This is expected to result in a credit agreement leverage of about 2.25x upon closing, with an aim to decrease it to the midpoint of LPL Financial’s target range of 1.5-2.5x.
Following the acquisition, Wayne Bloom, CEO of Commonwealth Financial Network, will join LPL Financial’s management committee.
Bloom will continue to guide the Commonwealth Financial Network community and advisor experience while collaborating with LPL Financial’s leadership on launching an office of advisor advocacy. This move is expected to enhance service experiences for LPL Financial’s advisers.
Bloom said: “This impressive partnership accelerates our joint competitive advantage, bringing unparalleled value to our advisers and our employees.
“Commonwealth will retain its brand as part of LPL, and Commonwealth advisers will continue to benefit from their relationships with our team members, all while taking full advantage of LPL’s scale and platform that fuels its industry-leading offerings.”
The transaction is slated for completion in the latter half of 2025, with full integration into the LPL Financial’s platform expected by mid-2026, subject to regulatory approvals and other conditions.
After the deal concludes, LPL Financial plans to assess opportunities for incorporating the Commonwealth advisor experience across its broader network, including reviewing capabilities developed with Advisor360°.
LPL Financial CEO Rich Steinmeier said: “Commonwealth is respected throughout our industry as a standard-bearer for service excellence, and their commitment to the success of their advisers is embedded in all aspects of their business.
“A complement to LPL’s client-centric culture, Commonwealth’s service philosophy enhances the value we’ll collectively bring to all advisers across the LPL network.
“In addition, LPL’s advanced technology, intuitive business solutions and breadth of wealth management offerings unlock boundless potential for Commonwealth Advisors and the clients they serve.”
Morgan Stanley & Co. is serving as LPL Financial’s exclusive financial adviser with Allen Overy Shearman Sterling providing legal counsel. Goldman Sachs & Co. is acting as the exclusive financial adviser for Commonwealth Financial Network, with legal representation from Ropes & Gray.
