SAN DIEGO, May 27, 2020 (GLOBE NEWSWIRE) -- Leading retail investment advisory firm and independent broker/dealer LPL Financial LLC, a wholly owned subsidiary of LPL Financial Holdings Inc. (NASDAQ: LPLA), today announced that it has signed an agreement to acquire the assets of E.K. Riley Investments, LLC, a broker-dealer and registered investment advisor (RIA) headquartered in Seattle. E.K. Riley Investments provides independent financial advice to individuals, affluent families, and business owners, with approximately 35 financial advisors and $2 billion of client assets under management.
“We welcome E.K. Riley Investments’ experienced team of advisors to the LPL family,” said Rich Steinmeier, LPL Financial managing director and divisional president, Business Development. “They share our commitment to clients and passion for independence. We are committed to their success, offering the benefits of LPL’s scale as well as access to integrated technology, an innovative wealth management platform and resources to help them run efficient and productive businesses. We look forward to a long-lasting partnership.”
“We chose to partner with LPL as a result of the overall cultural similarities between our two organizations,” said Brian Bertsch, President of E.K. Riley Investments. “Over the last few months we have been consistently impressed with their people-centric culture. We are excited to have our advisors become part of the LPL family.”
Edward Riley, Chairman and CEO of E.K. Riley Investments, agreed: “We believe that LPL’s culture, technology, and other capabilities provide the ideal environment for our financial advisors to offer outstanding service and advice to their clients.”
The transaction is structured as an asset purchase and is expected to close in the second half of 2020. The asset purchase agreement provides for both a payment at closing and potential contingent payments. LPL estimates a transaction multiple of approximately 6x post-synergy EBITDA.
About LPL Financial LPL Financial is a leader in the retail financial advice market and the nation’s largest independent broker/dealer*. LPL serves independent financial advisors and financial institutions, providing them with the technology, research, clearing and compliance services, and practice management programs they need to create and grow thriving practices. LPL enables them to provide objective guidance to millions of American families seeking wealth management, retirement planning, financial planning and asset management solutions.
