The effective closing of the deal was announced by both Avantax and Cetera Holdings, the holding company of Cetera Financial Group.
With 3,111 financial experts, $82.3bn in assets under administration and $42bn in assets under management as of 30 September 2023, Avantax is now an individual entity within the Cetera family.
Avantax’s trademark, primary technology, product offerings, legal entities, and current clearing and custody arrangements were all retained by Cetera.
Through its incorporation, Cetera’s recognised succession solution is bolstered, and its adviser communities benefit from a potent merged offering from Avantax Planning Partners, an employee-based RIA with over $7.8bn in assets under management as of 30 September 2023.
Mike Durbin, CEO of Cetera Holdings, stated: “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. Partnering with Avantax is core to our growth strategy and capitalises 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 advisers.”
Chris Walters, chief executive officer of Avantax added: “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.”
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Furthermore, the transaction was approved by the Avantax Board of Directors in unanimity, and the holders of about 81% of the outstanding shares of Avantax common stock who were eligible to vote on it also approved it.
Currently a privately held business, Avantax’s common stock will not be traded on Nasdaq.
Avantax received financial advice from PJT Partners, and legal counsel from Sidley Austin and Haynes and Boone.
Cetera was advised financially by Morgan Stanley & Co. and was co-advised by UBS Investment Bank and BMO Capital Markets. They were also represented by Willkie Farr & Gallagher.