SAN DIEGO - LPL Financial (NASDAQ:LPLA) Holdings Inc. (NASDAQ: LPLA), a leader in the financial advisory market, has announced a definitive agreement to acquire Atria Wealth Solutions, Inc., a New York-based wealth management solutions company. The acquisition, expected to close in the second half of 2024, will see Atria's network of approximately 2,400 advisors and 150 banks and credit unions, managing around $100 billion in assets, transition to LPL's platform.
Atria, established in 2017, operates a network of broker-dealer subsidiaries that cater to independent financial advisors and institutions nationwide. The agreement, signed on February 12, 2024, stipulates that Atria's brokerage and advisory assets will move to LPL's platform, which includes a broad range of services aimed at enhancing the success of financial advisors and institutions.
Dan Arnold, President and CEO of LPL Financial, expressed enthusiasm for the addition of Atria's advisors and institutions to the LPL family, highlighting the potential for optimized success through LPL's capabilities and services. Doug Ketterer, CEO and founding partner of Atria, echoed this sentiment and noted LPL's shared commitment to prioritizing advisors.
The transition of Atria's assets and advisors is subject to regulatory approval and other customary conditions, with the conversion expected to be completed by mid-2025. Morgan Stanley (NYSE:MS) & Co. LLC is serving as LPL's financial advisor, with Allen & Overy LLP as legal counsel. Atria is advised by Ardea Partners LP and Ropes & Gray LLP, with additional financial advice from William Blair & Company, LLC.
This strategic move is part of LPL's ongoing efforts to expand its services and support to financial advisors and institutions, reinforcing its position in the financial advisory sector.
The information for this report is based on a press release statement.
InvestingPro Insights
As LPL Financial Holdings (NASDAQ: LPLA) makes strategic moves to expand its advisory network through the acquisition of Atria Wealth Solutions, key metrics and insights from InvestingPro illuminate the financial backdrop of this influential player in the advisory market. LPLA's management has demonstrated confidence in the company's value through aggressive share buybacks, an InvestingPro Tip that aligns with the firm's growth-oriented strategy. Furthermore, the company's commitment to shareholder returns is evidenced by its consistent dividend payments over the past 13 years, a testament to its financial stability and foresight.
From a financial standpoint, LPLA's market capitalization stands at $18.77 billion, reflecting its substantial presence in the industry. The company's P/E ratio, a critical measure of its earnings valuation, is attractively set at 17.34 (adjusted for the last twelve months as of Q4 2023), suggesting a reasonable valuation relative to its earnings. Additionally, with a robust revenue growth of 16.88% in the same period, LPLA demonstrates a strong capacity for increasing its financial top line.
Investors considering LPLA's stock will find additional insights and tips on InvestingPro, where 5 analysts have recently revised their earnings projections upwards for the upcoming period, indicating potential optimism in the company's financial prospects. For those seeking comprehensive analysis and further InvestmentPro Tips, a visit to https://www.investing.com/pro/LPLA is recommended, with an additional 10% discount available on a yearly or biyearly Pro and Pro+ subscription using the coupon code PRONEWS24. In total, there are 11 more InvestingPro Tips available, offering a deeper dive into LPL's performance and potential.
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