Blucora to acquire $4.4 billion RIA based in Iowa
Parent of the former HD Vest specializes in tax-oriented wealth management
Blucora Inc., a tax-oriented wealth manager and financial technology provider, will acquire HK Financial Services, a CPA-focused registered investment adviser based in Dubuque, Iowa, managing $4.4 billion.
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Based in Irving, Texas, Blucora is the parent of the tax-focused broker-dealer Avantax Wealth Management, which formerly operated under the HD Vest and 1st Global brand names, and TaxAct, which it says is the third largest tax-preparation software by market share.
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The acquisition is being structured as a stock purchase with a price of $160 million, representing a multiple of approximately 9.3x fully realized synergies on pro-forma 2020 EBITDA of HKFS, Blucora said in a release. As part of the transaction, Blucora expects to issue $165 million of add-on term loan that is fungible with existing debt. The transaction is expected to close by the end of the first quarter of 2020.
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