Retail investment advisory firm LPL Financial has acquired National Planning Holdings (NPH), Prudential’s US broker-dealer network, for $325m.
LPL Financial will make a contingent payment between $0-123m in the first half of 2018 depending up on the level of NPH’s business that onboards onto LPL’s platform.
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Under the agreement, LPL will onboard NPH advisors and client assets onto its platform. During the onboarding period, NPH will continue to maintain its operations.
LPL Financial expects the deal to generate $75-100m of run-rate EBITDA accretion by the end of 2018. It also expects to incur onboarding costs of $40-60m.
LPL Financial president and CEO Dan Arnold said: “The demand for financial advice continues to grow, and the independent model is the fastest growing part of the industry. We are committed to being a leader in our core markets, so we are excited to announce our purchase of NPH which brings us together with one of the largest U.S. independent broker/dealer networks.
“This transaction adds to our scale, which we can leverage to provide LPL and NPH advisors with the capabilities they need, and the service they expect, at a compelling price. NPH advisors share our passion for independence and serving American investors. At LPL, NPH advisors and their clients will benefit from our scale, strength, and breadth of services, including the advantages of our self-clearing platform.”
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