LPL Financial to Acquire Financial Resources Group Investment Services

LPL Financial Holdings, Inc.

LPL Financial Holdings, Inc.

Financial Resources Group Investment Services is an LPL branch office with approximately 800 advisors and 85 financial institutions nation-wide serving approximately $40 billion of client assets

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

“We couldn’t be more pleased to join forces with LPL,” said Bruce Miller, partner and CEO of FRGIS. “We look forward to leveraging LPL’s financial strength and resources to enhance our support of existing client relationships and to attract new ones, enabling our continued strong growth trajectory. We are delighted to continue building FRGIS as part of this deepened relationship, while continuing to manage our operations, which have been key to our success.”

“We are excited to embark on this new phase of our relationship with our deeply respected, long-standing partner, FRGIS,” said Rich Steinmeier, LPL Financial managing director and divisional president, Business Development. “This acquisition strengthens our relationship with a strategically important client and provides a foundation on which to accelerate expansion of several strategic growth areas, particularly in the financial institution space. FRGIS is an industry leader of managed programs for banks and credit unions and provides a strategic complement to LPL’s existing enterprise offering.”

The transaction is structured as an equity purchase and is anticipated to close in early 2023, subject to receipt of regulatory approval and other customary closing conditions. The purchase price includes $140 million to be paid at the Closing, subject to standard adjustments included in the definitive purchase agreement, with additional earn-out payments over the three years following the Closing. As an existing LPL client, FRGIS assets are already on LPL’s custodial platform.

About LPL Financial

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

*Top RIA custodian (Cerulli Associates, 2020 US RIA Marketplace Report); No. 1 Independent Broker-Dealer in the US (Based on total revenues, Financial Planning magazine 1996-2022); among third-party providers of brokerage services to banks and credit unions, No. 1 in AUM Growth from Financial Institutions; No. 1 in Market Share of AUM from Financial Institutions; No. 1 in Market Share of Revenue from Financial Institutions; No. 1 on Financial Institution Market Share; No. 1 on Share of Advisors. (2021-2022 Kehrer Bielan Research & Consulting Annual TPM Report). Fortune 500 as of June 2021.

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

Securities and advisory services offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC). We routinely 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,” FRGIS’s vision was driven by a team of professionals with the common goal of assisting financial professionals and financial institutions in pursuing superior results. FRGIS moved to Fort Mill, South Carolina in 2015. In total, FGIS supports approximately 1,000 financial professionals in independent offices and financial institutions throughout the United States and serves over $40 billion in client assets. FRGIS is also an LPL Office of Supervisory Jurisdiction.

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 the expected benefits of LPL Financial’s acquisition of FRGIS. These and other statements that are not related to present facts or current conditions or that 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 are not guarantees that the future results, plans, intentions or expectations expressed or implied by the Company will be achieved.

Matters subject to forward-looking statements involve known and unknown risks and uncertainties, including economic, legislative, regulatory, competitive and other factors, which may cause levels of assets serviced, actual financial or operating results, levels of activity or the timing of events to be materially different than those expressed or implied by forward-looking statements. In particular, the Company can provide no assurance that the benefits that are expected to accrue to LPL Financial, FRGIS and their respective advisors and stockholders as a result of the transactions described herein will materialize. Important factors that could cause or contribute to such differences include: failure of the parties to satisfy the closing conditions applicable to the acquisition described herein in a timely manner or at all, including obtaining the required regulatory approvals, and the retention by FRGIS of minimum assets. prior to closing; disruptions to the parties’ businesses as a result of the announcement and pendency of the transactions; the inability by the Company to sustain revenue and earnings growth or to fully realize revenue or expense synergies or the other expected benefits of the transactions; disruptions of the Company’s or FRGIS’s businesses due to transaction-related uncertainty or other factors making it more difficult to maintain relationships with their respective financial advisors and clients, employees, other business partners or governmental entities; the inability to implement onboarding plans and other consequences associated with acquisitions; unforeseen liabilities arising from the acquisition of FRGIS’s subsidiaries; changes in general economic and financial market conditions, including retail investor sentiment; fluctuations in the value of assets under custody; effects of competition in the financial services industry; and the 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 those statements as representing the Company’s views as of any date. subsequent to the date of this press release.

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