Blucora, Inc. (NASDAQ: BCOR), a firm focused on wealth management and tax preparation, will rebrand its wealth management business to Avantax Wealth Management.
With the new brand, Blucora plans to unify its two wealth management divisions, HD Vest and 1st Global Inc. after acquiring the latter earlier this year. Together, HD Vest and 1st Global have a total of 4,200 affiliated advisors, who oversee more than $67 billion in client assets.
In June, the company launched a new proprietary “tax-smart” investing software platform, which seeks to help advisors capture tax-alpha for clients. The first module included at launch focused on tax-loss harvesting, with additional modules slated to be added by year end.
“With the launch of Avantax, we are creating a powerful brand for HD Vest and 1st Global that aims to redefine what ‘tax-smart’ wealth management means,” said Blucora’s president of wealth management Enrique Vasquez. “Each year investors give up 1-2 percentage points of performance to taxes – we look forward to working with our advisors to elevate their businesses, communicate the importance of a tax-focused approach, and most importantly provide better solutions and results for clients.”
The rebranding is expected to take place in two phases, with HD Vest converting to the Avantax Wealth Management name in mid-September 2019, followed by 1st Global once regulatory approval has been obtained.
Blucora operates in two segments that include wealth management and tax preparation. The company’s tax-focused broker-dealers HD Vest and 1st Global have a combined $67 billion in total client assets, while its TaxAct tax preparation business has approximately 3 million consumer and professional users.