LPL Financial has agreed to acquire Financial Resources Group Investment Services (FRGIS), an LPL branch office based in Fort Mill, S.C., that manages about $40 billion of advisory and brokerage assets, the company said.

LPL will pay $140 million for the business as an equity purchase when the deal closes, with additional, unspecified earn-out payments to follow over the next three years, LPL said in a press release.

FRGIS comprises about 800 advisors and 85 financial institutions nationwide, LPL said, adding that the deal is expected to close in early 2023, LPL said.

FRGIS will continue to operate independently within LPL following the closing of the acquisition, retaining both its brand and leadership team, LPL said. According to FRGIS founder and CEO Bruce Miller, the new partnership will be mutually beneficial.

“We couldn’t be more pleased to join forces with LPL,” he said in a news release. “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.”

Rich Steinmeier, LPL managing director and divisional president for business development, said in the news release that FRGIS was an industry leader of managed programs for banks and credit unions, and that its merger with LPL would complement his firm’s existing enterprise offering.

“We are excited to embark on this new phase of our relationship with our deeply respected, long-standing partner,” he said. “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.”

The transaction is subject to receipt of regulatory approval and other customary closing conditions, LPL said. 

Headquartered in Fort Mill, S.C., San Diego and Boston, LPL Financial LLC supports nearly 21,000 financial advisors, about 1,100 institution-based investment programs, and about 500 independent RIA firms nationwide.