Cetera completes Avantax acquisition, adding $82B AUA

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.

DEAL APPROVAL

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.