LPL Financial LLC, the nation’s largest independent broker-dealer, has signed an agreement to acquire Lucia Securities, a broker-dealer and registered investment advisor firm headquartered in San Diego, LPL announced today in a news release.

Lucia Securities, with 20 advisors and approximately $20 billion of client assets under management (AUM), provides independent financial advice to individuals, affluent families and business owners.

“I believe our wealth management platform, enhanced with LPL’s culture, technology and capabilities, provides the ideal environment for our financial advisors to exceed clients’ expectations. I look forward to a successful long-term partnership,” said Ray Lucia Jr., CEO, Lucia Securities.

Lucia is the son of former advisor and talk radio prsonality Ray Lucia Sr., who has spent the last five years engaged in an long-running feud with the Securities and Exchange Commission. After being banned from the industry for questionable back-testing of his investment performance results, Lucia Sr.  challenged the SEC, taking his case to the Supreme Court.

The transaction is structured as an asset purchase agreement and is expected to close in the second half of 2020. The purchase agreement provides for both a payment at closing and potential contingent payments. 

LPL said it expects to realize a profit from the acquisition at about six times the transaction cost.

“We are honored and excited to have this terrific group of experienced advisors joining LPL,” said Rich Steinmeier, LPL Financial managing director and divisional president, Business Development. “At LPL, Lucia Securities’ advisors and their clients will benefit from the strength and breadth of our capabilities, technology and services.  We look forward to supporting Lucia Securities on the next phase of their growth."

Raymond James & Associates acted as exclusive financial advisor to Lucia Securities on the transaction.

LPL Financial LLC, headquartered in Ft. Mill, S.C., San Diego and Boston, is a wholly owned subsidiary of LPL Financial Holdings Inc.