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LPL Financial (LPLA) Completes Allen & Company Acquisition

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Recently, LPL Financial Holdings Inc. (LPLA - Free Report) completed the acquisition of Lakeland, FL-based Allen & Company of Florida. The financial terms of the deal, announced in May 2019, remain undisclosed.

As part of the deal, all 33 advisors of Allen & Company have joined LPL Financial. Further, by the end of this year, nearly $3 billion worth of client assets will be transferred to LPL Financial’s platform.

Notably, Allen & Company, a registered investment advisor and a broker dealer, will continue to use its brand name.

The company expects its post-synergy EBITDA to be seven times compared with that before the acquisition.

Dan Arnold, LPL financial president and CEO noted, “We also look forward to collaborating as we innovate on our new model that preserves the principles of independence and wraps them in employee services.”

Also, Ralph Allen, chairman of Allen & Company stated, “And the firm’s ability to invest in technology, resources and business solutions is an advantage we experience every day, allowing us to be more efficient and have capabilities that enhance our value with clients. We look forward to the opportunities ahead as part of the LPL team.”



Our Viewpoint

We anticipate that the acquisition will help build synergies, leading to positive results for LPL Financial. Moreover, Allen & Company’s client base, which will be transferred to LPL Financial’s platform, will further stoke growth.

Shares of this Zacks Rank #3 (Hold) company have rallied 30% year to date, outperforming the industry’s rise of 10.7%.



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Earnings estimates for Evercore Inc (EVR - Free Report) moved 4.5% north, over the past 30 days. Further, the company’s shares have rallied 12.6% so far this year. It currently carries a Zacks Rank of 2 (Buy).  

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