Avantax to operate as a unique community
within Cetera Holdings, bringing more than 3,100 financial
professionals and over $82 billion in
assets to Cetera
Acquisition further expands Cetera's tax and
wealth management offerings and represents core component of
Cetera's growth strategy
DALLAS and LOS
ANGELES, Nov. 27, 2023 /PRNewswire/
-- Avantax, Inc. (NASDAQ: AVTA) and Cetera Holdings, the
holding company of Cetera Financial Group, announced today the
successful completion of Cetera's acquisition of Avantax. Avantax
is now a unique community within the Cetera family with 3,111
financial professionals, representing $82.3
billion in assets under administration and $42.0 billion in assets under management, as of
September 30, 2023. Cetera retained
Avantax's legal entities, brand, core technology, product offerings
and existing clearing and custody relationships. The addition of
Avantax Planning Partners, an employee-based RIA with over
$7.8 billion in assets under
management as of September 30, 2023,
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, CEO 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."
Durbin continued, "We will continue to prioritize a thoughtful
and collaborative approach to integration efforts to ensure a
smooth onboarding process for Avantax. We are confident Avantax
financial professionals, affiliates and staff will thrive at
Cetera, and we look forward to serving clients together for years
to come."
"I'd like to share my sincere gratitude to our Board of
Directors, our leadership team and the entire Avantax Community for
making Avantax the strong company it is today. We believe the
partnership with Cetera will expand Avantax's unique
tax-intelligent offering and position our financial professionals
and affiliates for continued growth and success," said Chris Walters, Chief Executive Officer of
Avantax.
Click here to learn more about Cetera Holdings and click
here to learn more about Avantax.
Transaction Details
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. 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.
Advisors
PJT Partners acted as financial advisor to Avantax, and Sidley
Austin LLP and Haynes and Boone, LLP served as legal counsel to
Avantax. Morgan Stanley & Co. served as financial advisor to
Cetera. UBS Investment Bank and BMO Capital Markets served as
co-advisors to Cetera. Willkie Farr
& Gallagher LLP served as legal counsel to Cetera.
About Cetera Financial Group®
Cetera Financial Group, which is owned by Cetera Holdings
(collectively, Cetera), is the premier financial advisor Wealth Hub
where financial advisors and institutions optimize their control
and value creation. Breaking away from a commoditized and
homogenous IBD model, Cetera offers financial professionals and
institutions the latest solutions, support, and services to grow,
scale, or transition with a merger, sale, investment, or succession
plan. Cetera proudly serves independent financial advisors, tax
professionals, licensed administrators, large enterprises, as well
as institutions, such as banks and credit unions, providing an
established and repeatable blueprint for scalable growth.
Home to more than 9,000 financial professionals and their teams,
Cetera oversees approximately $374
billion in assets under administration and $145 billion in assets under management, as of
September 25, 2023. In a recent
advisor satisfaction survey of more than 21,000 reviews, Cetera's
Voice of Customer (VoC) program vigorously measures advisor
experience and satisfaction 24/7. Currently, it's ranked 4.8 out of
5 stars.
Visit www.cetera.com, and follow Cetera
on LinkedIn, YouTube, Twitter and Facebook.
"Cetera Financial Group" refers to the network of independent
retail firms encompassing, among others, Cetera Advisors LLC,
Cetera Advisor Networks LLC, Cetera Investment Services LLC
(marketed as Cetera Financial Institutions or Cetera Investors),
and Cetera Financial Specialists LLC. All firms are FINRA/SIPC
members. Located at: 655 W. Broadway, 11th Floor, San Diego, CA 92101.
Individuals affiliated with Cetera firms are either Registered
Representatives who offer only brokerage services and receive
transaction-based compensation (commissions), Investment Adviser
Representatives who offer only investment advisory services and
receive fees based on assets, or both Registered Representatives
and Investment Adviser Representatives, who can offer both types of
services.
About Avantax®
Avantax, Inc. delivers tax-focused financial planning and wealth
management solutions for financial professionals, tax professionals
and CPA firms, supporting its goal of minimizing clients' tax
burdens through comprehensive tax-focused financial planning.
Avantax has two distinct, but related, models within its business:
the independent Financial Professional model and the employee-based
model. Avantax refers to its independent Financial Professional
model as Avantax Wealth Management®. Avantax Wealth
Management offers services through its registered broker-dealer,
registered investment advisor (RIA) and insurance agency
subsidiaries and is a leading U.S. tax-focused independent
broker-dealer that works with a nationwide network of financial
professionals operating as independent contractors. Avantax refers
to its employee-based model as Avantax Planning Partners℠. Avantax
Planning Partners offers services through its RIA and insurance
agency by partnering with CPA firms to provide their consumer and
small-business clients with holistic financial planning and
advisory services. Collectively, Avantax had $82.3 billion in total client assets as of
September 30, 2023. For additional
information, please visit www.avantax.com.
Cautionary Statement Regarding Forward-Looking
Statements
This release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended,
including without limitation, statements regarding Cetera's
integration plans, the effects of the acquisition on Avantax's
offerings and financial professionals. Forward-looking statements
provide current expectations of future events based on certain
assumptions and include any statement that does not directly relate
to any historical or current fact. Forward-looking statements can
also be identified by words such as "anticipates," "believes,"
"plans," "expects," "future," "intends," "may," "will," "would,"
"could," "should," "estimates," "predicts," "potential,"
"continues," "target," "outlook," and similar terms and
expressions, but the absence of these words does not mean that the
statement is not forward-looking. Actual results may differ
significantly from expectations due to various risks and
uncertainties including, but not limited to those described in the
Company's most recent Annual Report on Form 10-K and most recent
Quarterly Report on Form 10-Q filed with the U.S. Securities and
Exchange Commission. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as
of the date hereof. The Company undertakes no obligation to update
any forward-looking statements to reflect events or circumstances
after the date hereof, except as may be required by law.
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SOURCE Cetera Financial Group