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.
Jim Cahn, of Wealth Enhancement Group, lifts the lid on his firm's partnership model, his views on RIA M&A, and the widely slept-on reason why advisors are merging into larger organizations.
The fintech firm is cementing its status in the workplace savings space with its latest ESA offering, which employers can integrate into their existing benefits package.
Wealth managers offer unique ideas for couples to grow closer emotionally and financially.
Survey findings suggest increased sense of financial security and more optimistic 2025 outlook, while highlighting employers' role in ensuring retirement readiness.
Falling prices for some securities within the $4 trillion state and local government debt market spotlight how the push to shrink spending is sending shockwaves across the US.
Blue Vault Alts Summit highlights the role of liquidity-focused funds in reshaping advisor strategies
From 'no clients' to reshaping wealth management, Farther blends tech and trust to deliver family-office experience at scale.
