Cetera Financial to acquire Avantax for about $1.2 bln in all-cash deal (updated)

Avantax

11/09/2023 13:59

(Adds details from the statement in paragraph 2-3, background
in paragraph 4)
       Sept 11 (Reuters) - Financial advisor Cetera Financial
Group has agreed to acquire all of the issued and outstanding
equity of wealth management solutions provider Avantax  AVTA.O 
in an all-cash transaction, valuing it at about $1.2 billion,
including net debt, the companies said on Monday. 
    Shareholders of Avantax common stock will receive $26.00 in
cash per share, representing a 30.3% premium from the closing
price on September 8.
    After the deal closure, Avantax will become a standalone
business unit within the Cetera group, the statement added. 
    In June, investor Engine Capital LP had asked Avantax to
explore strategic alternatives, including a possible sale. 
    

 (Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by
Krishna Chandra Eluri)
 ((JaiveerSingh.Shekhawat@thomsonreuters.com;))