LPL Financial acquires Financial Resources Group Investment Services

LPL Financial Holdings, Inc.

Financial Resources Group Investment Services is an LPL branch with approximately 800 advisors and 85 financial institutions nationwide serving approximately $40 billion in client assets

SAN DIEGO, Nov. 03, 2022 (GLOBE NEWSWIRE) — LPL Financial Holdings Inc. (NASDAQ: LPLA) (“LPL Financial” or “LPL”) today announced that the company has entered into a definitive agreement to purchase acquire Financial Resources Group Investment Services (“FRGIS”), an LPL branch supporting financial institutions and advisors, headquartered in Fort Mill, South Carolina. FRGIS comprises approximately 800 advisers and 85 financial institutions nationwide, serving approximately $40 billion in advisory and brokerage assets. FRGIS will continue to operate independently within LPL following the closing of the Acquisition (the “Closing”), retaining its brand and management team.

“We couldn’t be happier to partner with LPL,” said FRGIS Partner and CEO Bruce Miller. “We look forward to leveraging LPL’s financial strength and resources to enhance our support for existing customer relationships and attract new ones, continuing our strong growth trajectory.” We are excited to continue to grow FRGIS as part of this deep relationship, while continuing to manage our operations, which have been key to our success.

“We are thrilled to embark on this new phase of our relationship with our long-standing and deeply respected partner, FRGIS,” said Rich Steinmeier, Managing Director of LPL Financial and Division President, Business Development. “This acquisition strengthens our relationship with a strategically important customer and provides a foundation from which to accelerate the expansion of several strategic growth areas, particularly in the area of ​​financial institutions. FRGIS is an industry leader in managed programs for banks and credit unions and provides a strategic complement to LPL’s existing enterprise offering.

The transaction is structured as a stock purchase and is expected to close in early 2023, subject to receipt of regulatory approval and other customary closing conditions. The purchase price includes $140 million payable at closing, subject to standard adjustments included in the definitive purchase agreement, with additional earnouts over the three years following closing. As an existing LPL customer, FRGIS assets are already on LPL’s custody platform.

About LPL Financial

LPL Financial (Nasdaq: LPLA) was founded on the principle that the business should work for the advisor, not the other way around. Today, LPL is a leader in the markets we serve,* supporting nearly 21,000 financial advisors, approximately 1,100 institutional investment programs and approximately 500 independent RIA firms nationwide. We are unwavering in our commitment to the advisor-centric model and the belief that Americans deserve access to personalized advice from a financial advisor. At LPL, independence means advisors have the freedom they deserve to choose the business model, services and technology resources that allow them to run their practice perfectly. And they have the freedom to manage their relationships with their customers because they know their customers best. Simply put, we take care of our advisors, so they can take care of their clients.

* Best RIA Custodian (Cerulli Associates, 2020 US RIA Marketplace Report); #1 independent brokerage in the United States (based on total revenue, Financial Planning magazine 1996-2022); among third-party providers of brokerage services to banks and credit unions, #1 in growth of financial institutions’ assets under management; No. 1 in financial institution AUM market share; #1 in financial institution revenue market share; #1 in Financial Institutions Market Share; No. 1 on the share of advisors. (Kehrer Bielan Research & Consulting TPM 2021-2022 Annual Report). Fortune 500 in June 2021.

LPL and its affiliates provide financial services only from the United States.

Securities and advisory services offered by LPL Financial (LPL), a registered investment adviser and broker-dealer (member FINRA/SIPC). We regularly disclose information that may be important to
shareholders in the “Investor Relations” or “Press Releases” section of our website.

FRGIS and LPL Financial are separate entities.

About Financial Resources Group Investment Services

Founded in May 2010 on a “commitment to serve”, the vision of FRGIS was driven by a team of professionals with the common goal of helping finance professionals and financial institutions achieve superior results. FRGIS moved to Fort Mill, South Carolina in 2015. In total, FRGIS supports approximately 1,000 finance professionals in independent offices and financial institutions across the United States and manages over $40 billion customer assets. FRGIS is also an LPL supervisory jurisdiction office.

Forward-looking statements

This press release includes statements regarding LPL Financial Holdings Inc. (together with its subsidiaries, including LPL Financial LLC, the “Company” or “LPL Financial”) and its potential growth, business strategy and plans, including expected benefits of LPL Financial’s acquisition of FRGIS. These and other statements that do not relate to current facts or current conditions or are not purely historical, constitute forward-looking statements. They reflect the Company’s plans, estimates and expectations as of November [3]2022. Forward-looking statements do not guarantee that any future results, plans, intentions or expectations expressed or implied by the Company will be achieved.

Matters that are the subject of forward-looking statements involve known and unknown risks and uncertainties, including economic, legislative, regulatory, competitive and other factors, which may cause levels of assets under management, financial results or actual operating results, activity levels or timing of events may differ materially from those expressed or implied by the forward-looking statements. In particular, the Company cannot guarantee that the expected benefits to LPL Financial, FRGIS and their respective advisors and shareholders as a result of the transactions described herein will materialize. Important factors that could cause or contribute to such differences include: failure by the parties to meet the closing conditions applicable to the Acquisition described herein on a timely basis or at all, including obtaining regulatory approvals required, and the retention by FRGIS of a minimum of assets prior to closure; disruptions to the parties’ businesses due to the announcement and pending of transactions; the Company’s inability to sustain revenue and earnings growth or fully realize the revenue or expense synergies or other expected benefits of the transactions; disruptions to the business of the Company or FRGIS due to transactional uncertainty or other factors that make it more difficult to maintain relationships with their respective financial advisors and clients, employees, other business partners or governmental entities; failure to implement integration plans and other consequences associated with acquisitions; unforeseen liabilities arising from the acquisition of FRGIS subsidiaries; changes in general economic and financial market conditions, including retail investor sentiment; fluctuations in the value of assets on deposit; the effects of competition in the financial services industry; and other factors set forth in the company’s 2021 Annual Report on Form 10-K and any subsequent filings with the Securities and Exchange Commission. Except as required by law, the Company specifically disclaims any obligation to update any forward-looking statements as a result of developments occurring after the date of this press release, and you should not rely on such statements as representing the opinions of the Company at any date. after the date of this press release.

contacts

Media Relations
[email protected]
(858) 386-3574

Investor Relations
[email protected]
(617) 897-4574

Louis R. Hancock