LPL Financial has purchased the four broker-dealers that make up National Planning Holdings (NPH), following a month of talks between the two firms.
NPH includes Invest Financial Corporation, Investment Centers of America, National Planning Corporation and SII Investments.
The deal, which is expected to close by the end of the first quarter of 2018, has been initially completed for $325 million, however it could increase to $448 million if the transition of advisors and clients are successful.
There will be no extra payment if less than 72% of NPH’s business transitions to LPL.
The deal will be done in the form of an asset sale, meaning that the seller still retains ownership of the business and has to pay all of the liabilities and debts before taking on the proceeds.
NPH is an affiliate of Jackson National Life Insurance Company and both are wholly owned subsidiaries of Prudential plc.
According to Barry Stowe, chief executive of Prudential plc’s North American business unit, the industry is in a time of significant regulatory change and consolidation in the independent broker-dealer sector.
Dan Arnold, president and chief executive officer of LPL, said: ‘At LPL, NPH clients and their financial advisors will benefit from our scale, strength and breadth of services, including the advantages of our self-clearing platform.’