Osaic buying Lincoln Financial Group's wealth business for $700M

In its largest acquisition since buying the Ladenburg Thalmann network three years ago, Osaic secured an agreement to acquire the wealth management business of Lincoln Financial Group.

Phoenix-based Osaic will purchase the stock in Radnor, Pennsylvania-based Lincoln's wealth subsidiaries, Lincoln Financial Advisors and Lincoln Financial Securities, from their parent. The transaction is expected to bring $700 million worth of "capital benefit" to Lincoln upon the expected close in the first half of next year, according to Dec. 14 announcements by both firms. 

Lincoln's wealth business has 1,450 financial advisors managing about $108 billion in client assets. Lincoln's independent brokerage arm was the No. 11 firm on Financial Planning's latest annual IBD Elite ranking with $861.9 million in annual revenue.

"As we look ahead, we will continue to focus on growing our individual insurance solutions and workplace solutions businesses and leveraging our core strengths, including our distribution leadership and strong brand, to deliver future value for all of our stakeholders," Lincoln CEO Ellen Cooper said in a statement. "We are pleased to have found a strong long-term home for Lincoln's wealth management business, and we believe this transaction will greatly benefit this national network of financial professionals who deliver invaluable services for their clients each and every day. We look forward to our continued partnership with our colleagues who will join Osaic, and together, we will ensure continuity and support a smooth and seamless transition."

The agreement followed major deals last year by Osaic, which formerly went by the name Advisor Group, to acquire midsize independent brokerage competitors American Portfolios Financial Services and Infinex Financial Holdings. Private equity-owned Advisor Group is also currently consolidating its eight existing brokerages into one. 

The Lincoln deal will bring the largest influx of advisors and assets into the firm since Reverence Capital Partners-backed Osaic paid $1.3 billion to buy the five Ladenburg brokerages in 2020.

"We're excited to welcome Lincoln Wealth's impressive leadership team, financial advisors and other dedicated employees to Osaic. This acquisition was driven by the strong partnership between Osaic and Lincoln Financial Group, which will continue into the future," Advisor Group CEO Jamie Price said in a statement. "We are committed to driving a seamless transition experience and continued business growth for Lincoln Wealth's financial advisors. Lincoln Wealth will soon assimilate into Osaic as part of 'Journey to One,' along with our other firms, which will allow them to benefit from our scale and the investments we've made in our advisors. The holistic approach to wealth management championed by Lincoln Wealth leadership and advisors mirrors our approach and we aim to build upon that strong foundation."