Tax-smart financial solutions provider Blucora has signed an amended agreement to acquire HK Financial Services (HKFS).
The companies said they mutually agreed to ink an amended deal in response to current economic conditions.
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Under the amended agreement, the purchase price has been adjusted to $100m from the originally targeted amount of $160m.
Additionally, the deal includes a financing contingency which will pay performance-based earnings, in case the original Asset Purchase Agreement (APA) is achieved overtime.
The deal has been scheduled to close before 1 October 2020. The extension of the closing window is subject to the mutual agreement of both the firms.
Blucora expects the amended transaction to be accretive to its EBITDA, EPS and cash flows.
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By GlobalDataThrough the latest acquisition, Blucora hopes to boost its revenue growth rate and margins.
Blucora President and CEO Chris Walters said: “The acquisition of HKFS will bring significant short and long-term strategic value to our advisors, end-customers and stockholders.
“Given the current market environment we felt it was appropriate to undertake a detailed review of the transaction terms and timing.
“The addition of HKFS to our business will allow us to deliver even more compelling solutions and choices to CPA firms, advisors and end-clients.”
As of 31 March 2020, HKFS had nearly $4.1bn in assets and approximately $214m in net inflows.
The acquisition adds HKFS to Blucora’s wealth management portfolio, which will offer end-to-end retirement plan services to clients and expand its tax-smart investing software.
