LPL Financial on Wednesday afternoon said it will acquire the wealth management arm of the struggling Waddell & Reed Financial Inc., which encompasses 921 registered reps and financial advisers and $63 billion in client assets. The deal is expected to close by the middle of next year.
It's an unusual, two-step transaction. LPL is paying $300 million for the wealth management group but only after Macquarie Asset Management closes its deal for the outstanding shares of Waddell & Reed, which was also announced Wednesday after the market closed.
Macquarie Group is acquiring all of the outstanding shares of Waddell & Reed for $25 per share in cash representing total consideration of $1.7 billion.
In October, Waddell & Reed's stock price jumped to a recent high on speculation that it was a takeover target. Waddell & Reed also owns the Ivy Funds, a leading manager of actively managed mutual funds, a struggling part of the asset management industry.
With almost 17,000 brokers and advisers, LPL has a long history of making large acquisitions. In 2017, LPL bought National Planning Holdings Inc., an independent broker-dealer network with 3,200 advisers.
Canadian stocks are on a roll in 2025 as the country prepares to name a new Prime Minister.
Two C-level leaders reveal the new time-saving tools they've implemented and what advisors are doing with their newly freed-up hours.
The RIA led by Merrill Lynch veteran John Thiel is helping its advisors take part in the growing trend toward fee-based annuities.
Driven by robust transaction activity amid market turbulence and increased focus on billion-dollar plus targets, Echelon Partners expects another all-time high in 2025.
The looming threat of federal funding cuts to state and local governments has lawmakers weighing a levy that was phased out in 1981.
RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.
As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.
