Blucora has agreed to acquire HK Financial Services (HKFS), a CPA-focused RIA with around $4.4bn in assets, for $160m.
US-based HKFS will become Blucora’s third division upon deal completion, which is anticipated in the first quarter of this year.
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Blucora’s other divisions are Avantax Wealth Management as well as TaxAct.
The addition of HKFS’ assets will boost Blucora’s assets to $72bn. This includes around 42% of advisory assets.
Blucora expects the transaction to add to its EPS and EBITDA.
Commenting on the takeover, Blucora president and CEO John Clendening said: “This transaction further reinforces Blucora’s strategy of delivering tax-advantaged wealth management solutions to advisers and end-clients while maintaining healthy margins and profitable growth.
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By GlobalData“We look forward to joining with HK Financial Services to provide more CPA firms, advisers and end-clients with additional capabilities and choice, while providing our Avantax advisers new opportunities for growth, broader solution sets, efficiency and profitability.”
The deal, which awaits regulatory nod, is expected to strengthen Blucora’s position in tax-smart investing.
Last year, Blucora announced the acquisition of tax-focused wealth manager 1st Global in a deal worth $180m. In 2015, Blucora purchased HD Vest for nearly $580m.
In September 2019, Blucora unveiled plans to combine HD Vest and 1st Global under the brand Avantax Wealth Management.
