RADNOR, PA — Lincoln Financial Group (NYSE: LNC) confirmed it recently penned a stock purchase agreement with Osaic, Inc., a leading wealth management solutions provider in the United States. The deal involves the sale of Lincoln’s wealth management business, including all ownership interests in its subsidiary entities involved in this sector. The transaction is set to provide approximately $700 million of capital benefit to Lincoln upon closing, which will primarily be used to bolster the company’s risk-based capital ratio. A portion is also expected to reduce its leverage ratio.
The transaction, which is slated to close in the first half of 2024, is not anticipated to have any material impact on the ongoing free cash flow or earnings of Lincoln. The closure is subject to the standard closing conditions and regulatory approvals.
As part of the agreement, Osaic will acquire Lincoln Financial Advisors Corporation (LFA) and Lincoln Financial Securities Corporation (LFS), Lincoln’s two independent broker-dealer and registered investment advisory firms. These entities encompass a national network of approximately 1,450 financial professionals. Moreover, Lincoln’s home-office employees supporting the wealth management business will transition to Osaic to ensure continued leadership and support.
However, Lincoln will retain all aspects of Lincoln Financial Distributors (LFD), its wholesale distribution franchise known for driving organic growth across Lincoln’s distinct retail product value propositions through a broad distribution network. Lincoln will also hold onto its channel of independent agents, which will now be integrated into LFD. As part of the agreement, LFD will expand its robust distribution relationship with Osaic, encompassing the network of financial professionals transitioning as part of the transaction, as well as Osaic’s broader financial professional network.
Ellen Cooper, Chairman, President, and CEO of Lincoln Financial Group, expressed her optimism about the future. She said, “We are pleased to have found a strong long-term home for Lincoln’s wealth management business. We believe this transaction will greatly benefit this national network of financial professionals who deliver invaluable services for their clients each and every day.” She also mentioned Lincoln’s commitment to growing its individual insurance solutions and workplace solutions businesses while leveraging its strong brand and distribution leadership.
Jamie Price, CEO of Osaic, welcomed the new team members and expressed his excitement over the continued partnership with Lincoln Financial Group. He emphasized the cultural alignment between Lincoln Wealth and Osaic, which makes the transaction a natural fit.
Wells Fargo Securities, LLC is serving as the exclusive financial advisor to Lincoln National Corporation for this transaction.
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