We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
LPL Financial on Buyout Spree, to Acquire Investment Center
Read MoreHide Full Article
LPL Financial (LPLA - Free Report) considers acquisitions a core part of its business expansion strategy. In sync with it, the company has signed a definitive agreement to acquire The Investment Center, Inc., a broker-dealer and registered investment adviser based in Bedminster, NJ.
The acquisition will bring The Investment Center’s 240 advisors and nearly $9 billion in assets under LPL Financial’s umbrella, reinforcing its strategy of expanding its advisor network and enhancing offerings.
The Investment Center’s entrepreneurial ethos and advisor-first philosophy align closely with LPL Financial’s mission, making the acquisition a natural fit. Rich Steinmeier, the company’s managing director and chief growth officer, highlighted the opportunity to further empower The Investment Center’s high-performing advisors with LPLA’s industry-leading technology and resources.
By integrating The Investment Center's well-established back-office support services and investment tools, LPL Financial intends to enhance the service experience for its advisors and clients.
LPLA’s Past Buyouts
Given a strong balance sheet position, LPL Financial has accomplished several opportunistic deals over the years. In May 2024, the company acquired the wealth management business of Crown Capital. In February 2024, it announced an agreement to acquire Atria Wealth Solutions to bolster its offerings in the wealth management solutions market.
In 2023, the company took a minority stake in IAA (a hybrid registered investment advisory firm) and acquired FRGIS and the Private Client Group business of Boenning & Scattergood. In 2021, it took over Waddell & Reed's wealth management business, while in 2020, the company acquired Blaze Portfolio, the assets of E.K. Riley Investments, LLC and Lucia Securities.
Inorganic expansion efforts have been helping LPL Financial diversify revenues, add new capabilities and accelerate expansion into new markets.
Our Take on LPL Financial’s Expansion Plans
The recent move to acquire The Investment Center reflects LPL Financial’s intent to solidify its market position by continually adding value through strategic acquisitions.
The deal is poised to strengthen LPLA’s asset base and broaden its advisory network, potentially leading to increased revenue streams. By bringing in more independent advisors and their assets, the company is well-positioned to achieve sustained growth.
So far this year, shares of LPL Financial have lost 3.9% against the industry's rally of 13.5%.
Last week, Bridgewater Bancshares Inc. (BWB - Free Report) signed an agreement to acquire First Minnetonka City Bank. The consideration will be fully settled in cash and includes a minimum tier 1 capital requirement by the First Minnetonka City Bank.
The deal is anticipated to be 15% accretive to BWB’s 2025 earnings per share with a tangible book value earn-back period of less than three years.
In August, Old Second Bancorp, Inc. (OSBC - Free Report) inked an agreement with First Merchants Corp. to buy five Illinois branches alongside certain branch-specific loans and deposits. These branches are located in Southeast Chicago MSA.
The acquisition is expected to strengthen OSBC’s status as one of the largest banks headquartered in Chicagoland and significantly expand its existing branch network, specifically in the Southeast Chicago market.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
LPL Financial on Buyout Spree, to Acquire Investment Center
LPL Financial (LPLA - Free Report) considers acquisitions a core part of its business expansion strategy. In sync with it, the company has signed a definitive agreement to acquire The Investment Center, Inc., a broker-dealer and registered investment adviser based in Bedminster, NJ.
The acquisition will bring The Investment Center’s 240 advisors and nearly $9 billion in assets under LPL Financial’s umbrella, reinforcing its strategy of expanding its advisor network and enhancing offerings.
The Investment Center’s entrepreneurial ethos and advisor-first philosophy align closely with LPL Financial’s mission, making the acquisition a natural fit. Rich Steinmeier, the company’s managing director and chief growth officer, highlighted the opportunity to further empower The Investment Center’s high-performing advisors with LPLA’s industry-leading technology and resources.
By integrating The Investment Center's well-established back-office support services and investment tools, LPL Financial intends to enhance the service experience for its advisors and clients.
LPLA’s Past Buyouts
Given a strong balance sheet position, LPL Financial has accomplished several opportunistic deals over the years. In May 2024, the company acquired the wealth management business of Crown Capital. In February 2024, it announced an agreement to acquire Atria Wealth Solutions to bolster its offerings in the wealth management solutions market.
In 2023, the company took a minority stake in IAA (a hybrid registered investment advisory firm) and acquired FRGIS and the Private Client Group business of Boenning & Scattergood. In 2021, it took over Waddell & Reed's wealth management business, while in 2020, the company acquired Blaze Portfolio, the assets of E.K. Riley Investments, LLC and Lucia Securities.
Inorganic expansion efforts have been helping LPL Financial diversify revenues, add new capabilities and accelerate expansion into new markets.
Our Take on LPL Financial’s Expansion Plans
The recent move to acquire The Investment Center reflects LPL Financial’s intent to solidify its market position by continually adding value through strategic acquisitions.
The deal is poised to strengthen LPLA’s asset base and broaden its advisory network, potentially leading to increased revenue streams. By bringing in more independent advisors and their assets, the company is well-positioned to achieve sustained growth.
So far this year, shares of LPL Financial have lost 3.9% against the industry's rally of 13.5%.
Image Source: Zacks Investment Research
At present, LPLA carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Finance Firms Making Similar Moves
Last week, Bridgewater Bancshares Inc. (BWB - Free Report) signed an agreement to acquire First Minnetonka City Bank. The consideration will be fully settled in cash and includes a minimum tier 1 capital requirement by the First Minnetonka City Bank.
The deal is anticipated to be 15% accretive to BWB’s 2025 earnings per share with a tangible book value earn-back period of less than three years.
In August, Old Second Bancorp, Inc. (OSBC - Free Report) inked an agreement with First Merchants Corp. to buy five Illinois branches alongside certain branch-specific loans and deposits. These branches are located in Southeast Chicago MSA.
The acquisition is expected to strengthen OSBC’s status as one of the largest banks headquartered in Chicagoland and significantly expand its existing branch network, specifically in the Southeast Chicago market.