LPL Financial, the nation’s largest independent broker-dealer, has completed its acquisition of broker-dealer network National Planning Holdings Inc., which is comprised of INVEST Financial Corporation, Investment Centers of America Inc., National Planning Corporation, and SII Investments Inc.
LPL purchased NPH last summer for an initial purchase price of $325 million and agreed to a contingent payment of between $0 and $123 million based on the level of NPH’s business that onboards onto its platform.
LPL has not disclosed the percentage of NPH revenue that has onboarded, so it is unclear at this time the amount of contingent payment – if any – LPL will pay.
No payment is due if less than 72 percent of NPH production is onboarded. If 72 percent or more is onboarded, the payment increases on an interpolated basis.
LPL previously estimated the transaction can generate $75-100 million of run-rate EBITDA accretion by the end of 2018 depending on the level of onboarding of NPH client assets.
LPL Financial oversees approximately $566 billion in brokerage and advisory assets as of October 31, 2017. The company serves more than 14,000 financial advisors and 700 financial institutions.