LPL Financial to Acquire Lucia Securities

Last Edited by: LPL Financial

Last Updated: April 28, 2020

LPL Financial to Acquire Lucia Securities

SAN DIEGO – April 28, 2020 – Leading retail investment advisory firm and independent broker/dealer LPL Financial LLC, a wholly owned subsidiary of LPL Financial Holdings Inc. (NASDAQ: LPLA) (together, the “Company” or “LPL”), today announced that it has signed an agreement to acquire Lucia Securities, a broker-dealer and registered investment advisor firm headquartered in San Diego.  Lucia Securities provides independent financial advice to individuals, affluent families, and business owners, with approximately 20 advisors and $1.5 billion of client assets under management.

The transaction is structured as an asset purchase agreement and is expected to close in the second half of 2020.  The purchase agreement provides for both a payment at closing and potential contingent payments.  The Company estimates a transaction multiple of ~6x post-synergy EBITDA.

“We are honored and excited to have this terrific group of experienced advisors joining LPL,” said Rich Steinmeier, LPL Financial managing director and divisional president, Business Development. “At LPL, Lucia Securities’ advisors and their clients will benefit from the strength and breadth of our capabilities, technology and services.  We look forward to supporting Lucia Securities on the next phase of their growth."

“I believe our wealth management platform, enhanced with LPL’s culture, technology and capabilities, provides the ideal environment for our financial advisors to exceed clients’ expectations. I look forward to a successful long-term partnership,” said Ray Lucia Jr., CEO, Lucia Securities.

Raymond James & Associates acted as exclusive financial advisor to Lucia Securities on the transaction.


About LPL Financial

LPL Financial is a leader in the retail financial advice market and the nation’s largest independent broker/dealer*.  LPL serves independent financial advisors 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.

Securities and Advisory Services offered through LPL Financial LLC, registered investment advisor. Member FINRA/SIPC.

*Based on total revenues, Financial Planning magazine June 1996-2019.

Forward-Looking Statements

Statements in this press release regarding LPL’s and Lucia Securities’ future operating results, growth and plans, including potential future levels of assets serviced, advisor headcount and post-synergy EBITDA, 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 Lucia Securities and LPL’s plans, estimates and expectations as of April 28, 2020. Forward-looking statements are not guarantees that the future levels of assets serviced, results, plans, intentions or expectations expressed or implied by LPL 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 levels of assets serviced, 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 assets reported as serviced by Lucia Securities’ financial advisors will translate into assets serviced at LPL, or that Lucia Securities’ advisors will join LPL. Important factors that could cause or contribute to such differences include: satisfaction of closing conditions under the parties’ purchase agreement, including receipt of transaction approval from the Financial Industry Regulatory Authority; difficulties and delays in recruiting Lucia Securities’ advisors and/or onboarding the clients of Lucia Securities’ advisors, which could negatively affect LPL’s ability to realize revenue or expense synergies or other expected benefits of the transaction; disruptions of LPL’s business that could make it more difficult to maintain relationships with its financial advisors and their clients; the choice by clients of Lucia Securities’ advisors not to open brokerage and/or advisory accounts at LPL; changes in general economic and financial market conditions, including retail investor sentiment; fluctuations in the value of assets under custody; effects of competition in the financial services industry, including competitors’ success in recruiting Lucia Securities’ advisors and their clients; 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 April 28, 2020. Estimated numbers are used for illustrative purpose only, are not forecasts and may not reflect actual results.