LPL Financial (LPLA) will acquire wealth management firm Commonwealth Financial Network in a $2.7 billion deal that will expand LPL's advisory staff.

Commonwealth "supports" about 2,900 independent financial advisers managing $285 billion in brokerage and advisory assets, the companies said in a statement Monday. The deal is expected to close in the second half of the year.

"Commonwealth Advisors will continue to benefit from their relationships with our team members, all while taking full advantage of LPL's scale and platform," said Wayne Bloom, chief executive of Commonwealth.

Bloom will head up a new office of advisor advocacy for LPL, "charged with further elevating the service experience for LPL's growing network of advisors," the companies said.

LPL has been on a deal-making trend, eyeing mergers and acquisitions as a key part of its growth strategy. Earlier in March, LPL closed its purchase of The Investment Center, with 160 "high-performing" advisers added to its network. Last year, LPL purchased Atria Wealth Solutions.

"Rising cost and complexity is making it harder for smaller players to effectively compete," LPL said in an investor presentation Monday. "We believe consolidation can drive value creation."

LPL's shares are up more than 3% so far this year, but were trading lower in pre-market activity. LPL separately said that it is selling $1.5 billion in shares for the Commonwealth acquisition, while bookrunner Morgan Stanley has an option to buy another $225 million. LPL said it will use corporate cash, debt and equity to fund the deal, putting it above the midpoint of the target leverage range of 1.5 times to 2.5 times.

The company will "pause share repurchases, resulting in pro-forma net leverage within management's target leverage range," LPL said in the presentation. In 2024, LPL made $170 million in share repurchases, according to its fourth-quarter financials.

LPL said it sees "low single-digit accretion" to run-rate adjusted earnings per share by the end of 2026.