M and A

Deals Of The Day: The Latest In Wealth Management M&A – Avantax, Cetera

Editorial Staff November 28, 2023

Deals Of The Day: The Latest In Wealth Management M&A – Avantax, Cetera

The latest mergers, acquisitions and other corporate actions in the wealth management sector.

Cetera Financial, Avantax
Cetera Holdings, the holding company of Cetera Financial Group, has completed its purchase of Avantax, a formerly listed financial planning firm and RIA with $7.8 billion of assets under management (September 30).

Under the terms of the transaction, Cetera kept Avantax's legal entities, brand, core technology, product offerings and existing clearing and custody relationships. 

Aa a result of the deal, Avantax has become 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.

As of September 25, Cetera oversees about $374 billion in assets under administration and $145 billion in assets under management.

"Partnering with Avantax is core to our growth strategy and capitalizes on Avantax's many capabilities that benefit financial professionals, affiliates and their clients,” Mike Durbin, CEO of Cetera Holdings said in a statement. “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.”

Durbin said the deal will create a strategic relationship between Cetera and Fidelity, as Cetera expands further into a multi-custodial platform. 

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.

Register for FamilyWealthReport today

Gain access to regular and exclusive research on the global wealth management sector along with the opportunity to attend industry events such as exclusive invites to Breakfast Briefings and Summits in the major wealth management centres and industry leading awards programmes