SAN DIEGO – Oct. 27, 2020 – LPL Financial Holdings Inc. (Nasdaq: LPLA), the parent corporation of leading retail investment advisory firm and independent broker/dealer LPL Financial LLC, today announced the company has acquired Blaze Portfolio, a Chicago-based fintech firm founded in 2010. Blaze Portfolio currently serves 135 investment firms and provides an advisor-facing trading system that LPL will integrate into its platform to expand its wealth management capabilities and drive growth.
“For many advisors, our trading platform is their lifeblood, and the way they express and execute their investment strategies for their clients in a sophisticated way. It’s important, therefore, that we continue to invest in our offering to help them differentiate, grow and win in the marketplace,” said Burt White, LPL Financial managing director and Chief Investment Officer. “Acquiring Blaze Portfolio will enable us to provide our advisors with a dynamic trading and rebalancing system that can be utilized by practices of all sizes, affiliations and sophistications to meet their clients’ needs.”
In addition to bringing Blaze Portfolio’s trading capabilities to all LPL Financial advisors, LPL will continue to offer Blaze Portfolio’s services as a stand-alone solution to the wealth management industry. LPL intends to retain the talented team of employees who will continue to evolve and expand the Blaze Portfolio technology offering.
“We are excited to join LPL because of our shared commitment to innovation and focus on delivering best-in-class advisor technology,” said Blaze Portfolio Chief Executive Officer Bryson Pouw. “With LPL, we have opportunity to scale, expand the capabilities of our product and partner with an experienced team to design technology around the advisor experience.”
The transaction signed and closed on Oct. 26, 2020. LPL paid an initial purchase price of approximately $12 million and has agreed to a potential contingent payment of up to $5 million subject to milestones and customary purchase price adjustments.
About LPL Financial
LPL Financial is a leader in the retail financial advice market and the nation’s largest independent broker-dealer*. We serve independent financial advisors, professionals, and financial institutions, providing them with the technology, research, clearing and compliance services, and practice management programs they need to create and grow thriving practices. LPL enables them to provide objective guidance to millions of American families seeking wealth management, retirement planning, financial planning and asset management solutions.
*Based on total revenues, Financial Planning magazine June 1996-2020.
Throughout this communication, the terms “financial advisors” and “advisors” include registered representatives and/or investment adviser representatives affiliated with LPL Financial, LLC, an SEC registered broker-dealer and investment adviser.
Securities and Advisor Services offered through LPL Financial, a registered investment advisor. Member FINRA/SIPC.
Statements in this press release regarding LPL’s and Blaze Portfolio’s future operating results, growth, business plans and technology strategies, including statements related to expected benefits of Blaze Portfolio’s services for LPL Financial advisors, the future provision of Blaze Portfolio’s services to LPL Financial advisors and as a stand-alone solution, and the future evolution and expansion of LPL’s service offerings, as well as any other statements that are not related to present facts or current conditions or that are not purely historical, constitute forward-looking statements. These forward-looking statements are based on the historical performance of LPL and Blaze Portfolio, and LPL’s plans, estimates and expectations as of October 27, 2020. Forward-looking statements are not guarantees that the future results, plans, intentions or expectations expressed or implied by the Company will be achieved. Matters subject to forward-looking statements involve known and unknown risks and uncertainties, including economic, legislative, regulatory, competitive and other factors, which may cause actual financial or operating results, levels of activity, or the timing of events, to be materially different than those expressed or implied by forward-looking statements. In particular, LPL can provide no assurance that the expected strategic benefits, synergies, capabilities, service enhancements and efficiencies expected to result from its acquisition of Blaze Portfolio will be achieved. Important factors that could cause or contribute to such differences include: difficulties or delays in providing Blaze Portfolio’s service offerings to LPL Financial advisors, including the integration of Blaze Portfolio’s service offerings into LPL’s technology platform; the attractiveness of Blaze Portfolio’s current and future service offerings to current and future LPL Financial advisors and external clients of Blaze Portfolio; the performance of Blaze Portfolio’s software as designed; the effectiveness of employees and third-party service providers in supporting Blaze Portfolio’s current and future service offerings; LPL’s ability to control operating risks, information technology systems risks and cybersecurity risks; changes in general economic and financial market conditions, including retail investor sentiment; and the other factors set forth in Part I, “Item 1A. Risk Factors” in LPL’s 2019 Annual Report on Form 10-K and any subsequent SEC filing. Except as required by law, LPL specifically disclaims any obligation to update any forward-looking statements as a result of developments occurring after the date of this press release, even if its estimates change, and you should not rely on those statements as representing LPL’s views as of any date subsequent to October 27, 2020.