Independent broker-dealer LPL Financial has agreed to buy Lucia Securities, a San Diego-based broker-dealer and RIA.
The deal value was not disclosed, other than the fact that the consideration will include an upfront payment at completion along with potential contingent payments.
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Lucia Securities CEO Ray Lucia Jr. said: “I believe our wealth management platform, enhanced with LPL’s culture, technology and capabilities, provides the ideal environment for our financial advisers to exceed clients’ expectations.”
The deal, structured in the form of an asset purchase agreement, is slated to conclude in the second half of this year.
It will add $1.5bn in client assets under management to LPL’s books.
The deal will also increase LPL’s adviser headcount by 20.
LPL anticipates transaction multiple of around 6x post-synergy EBITDA.
Lucia Securities serves individuals, affluent families as well as business owners.
Commenting on the takeover, LPL managing director and divisional president, Business Development, Rich Steinmeier said: “At LPL, Lucia Securities’ advisers 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.”
Last year, LPL announced the purchase of Allen & Company of Florida – a broker/dealer and RIA with almost $3bn of client assets and around 30 advisers.
