LPL Financial Holdings Inc. (NasdaqGS:LPLA) entered into an agreement to acquire wealth management business of Waddell & Reed Financial, Inc. (NYSE:WDR) for $300 million on December 2, 2020. The consideration is subject to customary net capital adjustments and assume certain liabilities related to the Wealth Management Business. LPL Financial Holdings will acquire wealth management business of Waddell & Reed Financial, upon completion of Macquarie's acquisition of all of the issued and outstanding common shares of Waddell & Reed. In a related transaction LPL Financial and Macquarie Asset Management have agreed to enter into a long-term partnership, with Macquarie becoming one of LPL Financial's top tier strategic asset management partners.

LPL anticipates financing this transaction with a combination of cash available for corporate use and debt. The transaction is subject to regulatory approvals, expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, Waddell & Reed stockholder approval, and other customary closing conditions. The transaction has been approved by the Boards of Directors of LPL Financial, Macquarie Group, and Waddell & Reed. The transaction received early termination notice from the Federal Trade Commission on January 15, 2021. The transaction is expected to close in the middle of 2021. As of April 29, 2021, the transaction is expected to close on April 30, 2021. The transaction is expected to be accretive to run-rate EPS prior to intangibles following asset transfer. Estimated run-rate EBITDA accretion of $50 million by twelve months following close. Centerview Partners LLC served as a financial advisor and Tom Fraser, Marko Zatylny, Brynn Rail, Leo Arnaboldi, Jonathan Klarfeld and Renata Ferrari of Ropes & Gray LLP served as a legal advisor for LPL Financial Holdings Inc.

LPL Financial Holdings Inc. (NasdaqGS:LPLA) completed the acquisition of Wealth Management Business of Waddell & Reed Financial, Inc. on April 30, 2021. On May 18, 2021, issued $400 million of senior unsecured notes related to the acquisition of Waddell & Reed's wealth management business.