By Denny Jacob
LPL Financial Holdings agreed to acquire independent wealth management firm Commonwealth Financial Network for about $2.7 billion.
Under the transaction structure, wealth management firm LPL will acquire full equity of the holding company of Commonwealth. LPL expects to finance the deal through a combination of cash, debt and equity.
The transaction is expected to close in the second half of the year, and the conversion to the LPL platform is expected to be completed in mid-2026.
Commonwealth Chief Executive Wayne Bloom will join LPL's management committee while continuing to lead Commonwealth and their advisor experience.
Following the close, LPL said it will evaluate opportunities to bring the Commonwealth advisor experience into its broader ecosystem.
LPL in a separate announcement Monday said it's commenced an underwritten public offering of $1.5 billion of its common stock. The company intends to use the net proceeds of this offering to fund a portion of the cash consideration for its acquisition, as well as general corporate purposes if any remains after the deal or if the deal isn't completed.
Write to Denny Jacob at denny.jacob@wsj.com
(END) Dow Jones Newswires
March 31, 2025 07:13 ET (11:13 GMT)
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