Cetera to acquire Avantax in billion-dollar deal
Summary
The parent of Cetera Financial Group secured an agreement to acquire tax-focused wealth management firm Avantax in an all-cash deal valuing the company at $1.2 billion. After the spinoff of the tax preparation software business last year for $720 million, Avantax has been focused solely on wealth management. Our tax-centric Cetera Financial Specialist team has already created a formidable presence in our industry, and we are delighted that after the closing of this acquisition, we will be able to offer all of our advisors even greater opportunities to expand into tax and accounting." Avantax will remain "a standalone business unit" within Cetera after the deal, which is priced at a 30% premium of its closing value in the last day of stock trading, the firms said in a press release. "Over the past several years, Avantaxs board and senior management team have positioned the Company for long-term, sustainable growth through a simplified strategy, strengthened balance sheet and improved operational performance while exploring strategic opportunities for the future success of the business," Avantax Chair Georganne Proctor said in a statement.