Subsidiary of Cetera Financial Group, Cetera Holdings acquired financial serviced provider Avantax Inc, on Monday. The firm said the deal comprises of 3,111 financial professionals, representing $82.3 billion in assets under administration and $42 billion in assets under management, as of September 30.
The acquisition of Dallas-based Avantax was approved by its 81% of the outstanding shares said the wealth manager Cetera. Additionally, Cetera will retain Avantax’s legal entities, brand, core technology, product offerings along with existing clearing and custody relationships.
Avantax is a privately held entity, and its shares will no longer be traded on Nasdaq, said Cetera. The tax advisor also said, shareholders of Avantax will receive $26 in cash per share, without interest and subject to required withholding taxes.
Mike Durbin, chief executive of Cetera Holdings said, “The Avantax Community immediately builds upon Cetera’s tax and wealth management capabilities and expertise, complementing our established tax-centric Cetera Financial Specialist team, and provides financial professionals another avenue for affiliation with Cetera.”
“This acquisition establishes a strategic relationship between Cetera and Fidelity, as Cetera expands further into a multi-custodial platform, enhancing our capabilities to deliver the latest tools and resources to affiliated advisors,” Durbin added.
“I’d like to share my sincere gratitude to our board of directors, our leadership team and the entire Avantax Community for making Avantax the strong company it is today, we believe the partnership with Cetera will expand Avantax’s unique tax-intelligent offering and position our financial professionals and affiliates for continued growth and success,” said Chris Walters, CEO of Avantax.
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