Independent broker-dealer LPL Financial has wrapped up the purchase of San Diego-based broker-dealer Lucia Securities, which manages over $1.5bn in client assets.
The deal was announced in April this year.
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All 20 advisers of Lucia will move to LPL as part of the deal and carry out business as Lucia Capital Group.
LPL expects a transaction multiple of ~6x post-synergy EBITDA.
Commenting on the deal, LPL Financial managing director and divisional president, Business Development Rich Steinmeier said: “LPL is proud to welcome the Lucia Capital Group team of advisors to our platform.
“As their partner, we are committed to their success. By investing on an ongoing basis in technology and digital capabilities, we strive to help them differentiate their practices in their markets, operate efficient and productive practices, and build businesses with value. We look forward to a long-term partnership with Lucia Capital Group.”
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By GlobalDataLPL recently also concluded the acquisition of Seattle-based broker-dealer E.K. Riley Investments.
This deal, announced in May 2020, adds over $2 billion of client assets to LPL.
As part of the deal, LPL will absorb around 90% of E.K. Riley’s 35 independent advisers.
The assets of both Lucia as well as E.K. Riley are expected to be transferred to LPL by the end of this year.
Financial terms of both the deals, which were structured as asset purchase, were undisclosed.
Steinmeier noted: “An established and successful firm, E.K. Riley recognised the value that a partnership with LPL could bring to their firm today as well as into the future. One way we demonstrate our commitment to our advisers is through the delivery of relevant resources and technology that help them thrive in today’s competitive environment.
“And with our scale and unwavering adviser focus, our clients can be assured they have a partner who will invest in their success over the long run.”
