LPL Financial to Acquire Financial Resources Group Investment Services
LPL Financial Holdings Inc. (NASDAQ: LPLA) (“LPL Financial” or “LPL”) today announced that the firm has entered into a definitive purchase agreement to acquire Financial Resources Group Investment Services (“FRGIS”), an LPL branch office supporting financial institutions and advisors, headquartered in Fort Mill, South Carolina. FRGIS comprises approximately 800 advisors and 85 financial institutions nation-wide, serving approximately $40 billion of advisory and brokerage assets. FRGIS will continue to operate independently within LPL following the closing of the acquisition (the “Closing”), retaining its brand and leadership team
SAN DIEGO, Nov. 03, 2022 (GLOBE NEWSWIRE) -- LPL Financial Holdings Inc. (NASDAQ: LPLA) (“LPL Financial” or “LPL”) today announced that the firm has entered into a definitive purchase agreement to acquire Financial Resources Group Investment Services (“FRGIS”), an LPL branch office supporting financial institutions and advisors, headquartered in Fort Mill, South Carolina. FRGIS comprises approximately 800 advisors and 85 financial institutions nation-wide, serving approximately $40 billion of advisory and brokerage assets. FRGIS will continue to operate independently within LPL following the closing of the acquisition (the “Closing”), retaining its brand and leadership team.
“We couldn’t be more pleased to join forces with LPL,” said Bruce Miller, partner and CEO of FRGIS. “We look forward to leveraging LPL’s financial strength and resources to enhance our support of existing client relationships and to attract new ones, enabling our continued strong growth trajectory. We are delighted to continue building FRGIS as part of this deepened relationship, while continuing to manage our operations, which have been key to our success.”
“We are excited to embark on this new phase of our relationship with our deeply respected, long-standing partner, FRGIS,” said Rich Steinmeier, LPL Financial managing director and divisional president, Business Development. “This acquisition strengthens our relationship with a strategically important client and provides a foundation on which to accelerate expansion of several strategic growth areas, particularly in the financial institution space. FRGIS is an industry leader of managed programs for banks and credit unions and provides a strategic complement to LPL’s existing enterprise offering.”
The transaction is structured as an equity purchase and is anticipated to close in early 2023, subject to receipt of regulatory approval and other customary closing conditions. The purchase price includes $140 million to be paid at the Closing, subject to standard adjustments included in the definitive purchase agreement, with additional earn-out payments over the three years following the Closing. As an existing LPL client, FRGIS assets are already on LPL’s custodial platform.
