Lincoln Financial Group Enters Agreement to Sell Wealth Management Business to Osaic, Inc.
14 Dezembro 2023 - 6:05PM
Business Wire
- Lincoln’s independent broker-dealer and registered investment
advisory firms, including a national network of financial
professionals, will be acquired by Osaic effective upon the
transaction closing, which is expected in the first half of
2024.
- The transaction is expected to provide approximately $700
million of capital benefit to Lincoln upon closing, which is
anticipated to be used primarily to increase the company’s
risk-based capital ratio. Lincoln also plans to use a portion of
the capital benefit to reduce its leverage ratio. There are no
expected material impacts to ongoing free cash flow or earnings as
a result of this transaction.
- Lincoln retains all aspects of Lincoln Financial Distributors
(LFD), its industry-leading wholesale distribution franchise, which
drives organic growth across Lincoln’s distinct retail product
value propositions through a broad distribution network. Lincoln
will also retain its channel of independent agents, which will now
be part of LFD. Additionally, as part of the transaction, LFD will
further expand its strong distribution relationship with Osaic,
including the network of financial professionals that will
transition as part of this transaction, and Osaic’s broader
financial professional network.
Lincoln Financial Group (NYSE: LNC) today announced that it has
signed a stock purchase agreement with Osaic, Inc. (Osaic), one of
the nation’s largest providers of wealth management solutions,
which will acquire Lincoln’s wealth management business, including
all ownership interests in the Lincoln subsidiary entities
comprising that business. The transaction is expected to provide
approximately $700 million of capital benefit to Lincoln upon
closing, which is anticipated to be used primarily to increase the
company’s risk-based capital ratio. Lincoln also plans to use a
portion of the capital benefit to reduce its leverage ratio. There
are no expected material impacts to ongoing free cash flow or
earnings as a result of this transaction. The transaction is
expected to close in the first half of 2024, subject to customary
closing conditions, including regulatory approvals.
The transaction will include the sale to Osaic of Lincoln
Financial Advisors Corporation (LFA) and Lincoln Financial
Securities Corporation (LFS) – the company’s two independent
broker-dealer and registered investment advisory firms. Together,
these entities comprise a national network of approximately 1,450
financial professionals. Additionally, Lincoln’s home-office
employees who support the wealth management business will
transition to Osaic to continue to lead and support the
business.
Lincoln will retain all aspects of Lincoln Financial
Distributors (LFD), its industry-leading wholesale distribution
franchise, which drives organic growth across Lincoln’s distinct
retail product value propositions through a broad distribution
network. Lincoln will also retain its channel of independent
agents, which will now be part of LFD. Additionally, as part of the
transaction, LFD will further expand its strong distribution
relationship with Osaic, including the network of financial
professionals that will transition as part of this transaction, and
Osaic’s broader financial professional network.
“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,” said Ellen Cooper, Chairman, President and CEO of
Lincoln Financial Group. “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.”
"We’re excited to welcome Lincoln Wealth’s impressive leadership
team, financial professionals and dedicated employees to Osaic.
This transaction was driven by the strong partnership between Osaic
and Lincoln Financial Group which will continue into the future,”
said Jamie Price, CEO of Osaic. “The cultural alignment between
Lincoln Wealth and Osaic makes this a natural fit and we look
forward to continuing to serve this network of financial
professionals with the strong culture of community and development
they have built.”
Wells Fargo Securities, LLC is serving as exclusive financial
advisor to Lincoln National Corporation in connection with the
transaction.
FORWARD-LOOKING STATEMENTS – CAUTIONARY LANGUAGE
Certain statements made in this press release are
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995 (“PSLRA”). A
forward-looking statement is a statement that is not a historical
fact and, without limitation, includes any statement that may
predict, forecast, indicate or imply future results, performance or
achievements. Forward-looking statements may contain words like:
“anticipate,” “believe,” “estimate,” “expect,” “project,” “shall,”
“will” and other words or phrases with similar meaning in
connection with a discussion of future operating or financial
performance. In particular, these include statements relating to
future actions, performance or financial results, including the
closing of the transaction and the timing thereof, the expected
capital benefit and uses thereof, and the expected impact of the
transaction on free cash flow and earnings. Our most recent Annual
Report on Form 10-K, as well as other reports that we file with the
SEC, include risk factors that could affect our future actions,
businesses and financial performance and results. Moreover, we
operate in a rapidly changing and competitive environment. New risk
factors emerge from time to time, and it is not possible for
management to predict all such risk factors or to assess the effect
of all risk factors on our businesses or the extent to which any
factor, or combination of factors, may cause actual results to
differ materially from those contained in any forward-looking
statements. Given these risks and uncertainties, investors should
not place undue reliance on forward-looking statements as a
prediction of actual results. In addition, we disclaim any
obligation to update any forward-looking statements to reflect
events or circumstances that occur after the date of this press
release.
About Lincoln Financial Group
Lincoln Financial Group helps people to plan, protect and retire
with confidence. As of Dec. 31, 2022, approximately 16 million
customers trust our guidance and solutions across four core
businesses – annuities, life insurance, group protection and
retirement plan services. As of September 30, 2023, the company had
$290 billion in end-of-period account balances, net of reinsurance.
Headquartered in Radnor, Pa., Lincoln Financial Group is the
marketing name for Lincoln National Corporation (NYSE: LNC) and its
affiliates. Learn more at LincolnFinancial.com.
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Tina Madon 800-237-2920 Investor Relations
InvestorRelations@LFG.com Amy Ponticello 484-269-7151 Media
Relations Amy.Ponticello@LFG.com
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