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.
The proposed $120 million settlement would close the book on a legal challenge alleging the Wall Street banks failed to disclose crucial conflicts of interest to investors.
Sue Quackenbush brings more than 25 years of leadership experience to "align people strategies with a growth-oriented culture" at Envestnet.
The Democrat from Massachusetts is pushing the retirement plan giant to explain how it would protect participants from risks linked to private markets.
More than one-third of small business owners plan to sell in the next year, as inflation concerns and tariff pressures compound exit planning gaps.
The move to charge data aggregators fees totaling hundreds of millions of dollars threatens to upend business models across the industry.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
