Jackson National, a subsidiary of Prudential and one of the nation’s leading issuers of annuities, reportedly began exploring the sale of NPH in the wake of the U.S. Department of Labor’s fiduciary rulemaking.
LPL estimates that onboarding NPH will take $40 million to $60 million, and that the process will be mostly compete by mid-2018.
The transaction gives LPL an advisor network of more than 17,000 representatives, and LPL expects the transaction could create $75 million to $100 million of run-rate EBITDA accretion by the end of 2018, and $0.40 to $0.55 earnings-per-share accretion prior to amortization of intangible assets.
As of June 30, LPL reported $542 billion in brokerage and advisory AUM, while NPH reported $120 billion in AUM.