Cetera Holdings has completed its acquisition of Avantax Inc. adding $82.3 billion in assets under administration and $42 billion in assets under management to Cetera.
The deal included Avantax’s legal entities, brand, core technology, product offerings and existing clearing and custody relationships, including a $7.8 billion RIA, Avantax Planning Partners, and there is now a unique Avantax community within Cetera with 3,111 financial professionals.
Mike Durbin, Cetera Holdings CEO, commented that the completion of the acquisition marks a “promising new chapter” for both firms.
"Partnering with Avantax is core to our growth strategy and capitalizes on Avantax's many capabilities that benefit financial professionals, affiliates and their clients,” he said in a statement. “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.”
The deal also establishes a strategic relationship between Cetera and Fidelity, as Cetera expands further into a multicustodial platform.
Announced in September, the $1.2 billion price tag was 180% of Avantax’s 2022 revenues and the deal was unanimously approved by Avantax’s board while shareholders entitled to vote approved the transaction by 81%.
Avantax was listed on the Nasdaq but Cetera’s acquisition takes the firm private, with holders of shares of Avantax common stock are entitled to receive $26.00 in cash per share, without interest and subject to required withholding taxes.
The deal has not been entirely smooth, though, with an Avantax shareholder filing a lawsuit against the company alleging failure to make adequate disclosures relating the Cetera deal.
A former Alabama investment advisor and ex-Kestra rep has been permanently barred and penalized after clients he promised to protect got caught in a $2.6 million fraud.
As more active strategies get packaged into the ETF wrapper, advisors and investors have to look beyond expense ratios as the benchmark for value.
Survey finds AI widely embedded in research and analysis, but barely touching portfolio construction or trade execution.
Two firms land teams managing more than $1.1 billion in combined assets from Kestra and Edward Jones.
A private partnership, Edward Jones is a giant in the retail brokerage industry with more than 20,000 financial advisors.
Wellington explores how multi strategy hedge funds may enhance diversification
As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management
