LPL Financial has agreed to acquire Allen & Company, a Lakeland, Fla.-based broker/dealer and RIA with 30 advisors and $3 billion in assets under management.
Allen & Company will maintain its name and existing operations while moving its client assets to LPL's custodial platform. LPL's acquisition agreement includes a provision that will adjust the total purchase price based on the portion of Allen & Company's client assets that move over. LPL estimates a transaction multiple of seven times post-synergy EBITDA.
The b/d claims to be the oldest investment firm in the state of Florida, established in 1932. It's CEO, Ralph Allen, started working at the company during his high school summers before officially joining as a financial advisor trainee in 1963.
"We are fortunate to have been able to support thousands of clients over the past eight decades, and we are ready to take our business to the next level,” Allen said, in a statement. "We are excited to use the strength of LPL’s advisory and centrally managed platforms, open-architecture product offering, and integrated clearing capabilities."
As of April 2019, LPL Financial had $699 billion in assets under management, up 2.2% from the previous month. The Boston-based broker/dealer had 16,189 advisors at the end of the first quarter.