LPL Financial Acquires Altria Wealth Solutions, Appoints New CEO

Acquisition Details - LPL Financial Holdings (LPLA) has completed the acquisition of Altria Wealth Solutions, Inc., which manages approximately $100 billion in brokerage and advisory assets, with nearly 80% in brokerage accounts [1][2] - The onboarding and integration costs for this acquisition are expected to be between $300 million and $350 million, with anticipated additional earnings of $140 million annually from the deal [3] - LPL Financial aims to meet or exceed a retention target of 80% for Altria advisors, with onboarding expected to be completed by mid-2025 [4] Strategic Alignment - The acquisition aligns with LPL Financial's goal to empower independent financial advisors and institutions by providing comprehensive support and resources, building on previous acquisitions such as National Planning Holdings and Waddell & Reed [5] - LPLA considers acquisitions a core part of its business expansion strategy, having recently acquired Crown Capital and agreed to acquire The Investment Center, Inc. [6] Leadership Change - LPLA's board terminated CEO Dan H. Arnold for violating the company's code of conduct, following an investigation that found he made inappropriate statements to employees [7] - Rich Steinmeier has been appointed as interim CEO, effective immediately, emphasizing the company's commitment to a respectful workplace [8] Market Performance - Year-to-date, shares of LPL Financial have risen by 1%, compared to the industry's growth of 17.7% [9]