LPL Financial to buy Commonwealth Financial for $2.7bn

LPL Financial Holdings has reached a definitive agreement to acquire Commonwealth Financial Network in a deal valued at around $2.7bn.

The deal is slated for completion in the second half of 2025, with full integration into the LPL platform anticipated in mid-2026, contingent on regulatory approvals.

Post-acquisition, LPL will explore ways to incorporate Commonwealth’s advisor experience and capabilities, developed with Advisor360°, into the LPL ecosystem.

LPL will fund the acquisition using a mix of corporate cash, debt, and equity.

Headquartered in Waltham, Massachusetts, Commonwealth offers integrated business solutions for around 2,900 financial advisors who manage about $285bn in brokerage and advisory assets.

Commonwealth founder Joseph Deitch said: “As we’ve grown our business over the past 46 years, Commonwealth has placed a premium on delivering the industry’s highest standards of service.

“We’ve been diligent in finding a partner that shares our mission of prioritising Advisor needs above all else. LPL became the logical choice for our next chapter.”

Upon completion of the acquisition, Commonwealth CEO Wayne Bloom will become part of LPL’s management committee and report to its CEO Rich Steinmeier.

Bloom will continue to spearhead the Commonwealth community and their advisor experience, as well as collaborate with LPL’s leadership to establish the office of advisor advocacy.

Steinmeier said: “Commonwealth is respected throughout our industry as a standard-bearer for service excellence, and their commitment to the success of their Advisors is embedded in all aspects of their business.

“A complement to LPL’s client-centric culture, Commonwealth’s service philosophy enhances the value we’ll collectively bring to all Advisors across the LPL network.”

Morgan Stanley is LPL’s exclusive financial advisor for the transaction, with Allen Overy Shearman Sterling as its legal counsel.

Goldman Sachs is exclusive financial advisor to Commonwealth, with Ropes & Gray offering legal counsel.

In February this year, LPL Financial expanded its alliance with SS&C Technologies to enhance its alternatives business using SS&C’s ALTSERVE platform.