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Cetera Completes Acquisition of Avantax

Cetera Completes Acquisition of Avantax. Avantax, broker-dealer, brokerage, financial planning, financial services, investment advisor, LPL Financial LLC, RIA, wealth management
Cetera Completes Acquisition of Avantax. Avantax, broker-dealer, brokerage, financial planning, financial services, investment advisor, LPL Financial LLC, RIA, wealth management

Avantax Inc. (NASDAQ: AVTA), a tax-focused financial planning firm, and the parent company of Cetera Financial Group, one of the nation’s largest networks of independently managed broker-dealers, announced the successful completion of Cetera’s acquisition of Avantax.

As The DI Wire previously reported, the companiers entered into a definitive agreement in September 2023 whereby Cetera would acquire Avantax in an all-cash transaction totaling approximately $1.2 billion.

Avantax includes 3,111 financial professionals representing $82.3 billion in assets under administration and $42.0 billion in assets under management, as of Sept. 30, 2023.

Cetera retained Avantax’s legal entities, brand, core technology, product offerings and existing clearing and custody relationships. Cetera says the addition of Avantax Planning Partners “strengthens Cetera’s established succession solution and delivers a powerful combined offering for Cetera’s advisor communities.”

“This transaction represents the beginning of a promising new chapter together for two industry-leading firms, and we are pleased to welcome the Avantax team to Cetera,” said Mike Durbin, chief executive officer of Cetera Holdings. “Partnering with Avantax is core to our growth strategy and capitalizes on Avantax’s many capabilities that benefit financial professionals, affiliates and their clients. 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. In addition, this acquisition establishes a strategic relationship between Cetera and Fidelity, as Cetera expands further into a multi-custodial platform, enhancing our capabilities to deliver the latest tools and resources to affiliated advisors.”

Avantax’s board of directors unanimously approved the transaction, and holders of approximately 81% of the outstanding shares of Avantax common stock entitled to vote thereon approved the transaction.

As a result of the merger, Avantax is now a privately held company and its common stock will no longer be traded on NASDAQ. 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.

Cetera Financial Group serves more than 9,000 independent financial professionals and their teams, including tax professionals, banks and credit unions in providing financial planning and wealth management services. Cetera oversees approximately $374 billion in assets under administration and $145 billion in assets under management.

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