LPL Financial has snapped up Blaze Portfolio, a Chicago-based fintech firm providing an adviser-facing trading system, in a deal worth up to $17m.

The deal involved an upfront payment of $12m as well as a deferred consideration of up to $5m based on certain milestones.

LPL will integrate the Blaze trading and portfolio rebalancing software into its core platform.

Blaze CEO Bryson Pouw said: “We are excited to join LPL because of our shared commitment to innovation and focus on delivering best-in-class adviser technology.

“With LPL, we have opportunity to scale, expand the capabilities of our product and partner with an experienced team to design technology around the adviser experience.”

LPL will continue to offer the services of Blaze as a stand-alone offering to industry players. As part of the deal, LPL will absorb the employees of Blaze.

Commenting on the takeover, LPL managing director and CIO Burt White said: “Acquiring Blaze Portfolio will enable us to provide our advisers with a dynamic trading and rebalancing system that can be utilised by practices of all sizes, affiliations and sophistications to meet their clients’ needs.”

Set up in 2010, Blaze caters to 135 investment firms.

Other M&A activities by LPL

LPL has also acquired a fintech firm earlier.

In 2018, the firm acquired wealth management technology provider AdvisoryWorld for $28m. The California-based firm offers proposal generation, investment analytics and portfolio modeling capabilities.

In August this year, LPL snapped up San Diego-based broker-dealer Lucia Securities with more than $1.5bn in client assets.

LPL Financial also acquired the assets of $2bn Seattle-based  broker-dealer and RIA E.K. Riley Investments this year.

Meanwhile, this April, LPL affiliates Financial Resources Group Investment Services and Gladstone Wealth Group agreed to merge operations in a deal that will create a financial behemoth with $24bn in brokerage and advisory assets.