Acquisition Details and Strategic Benefits
San Diego-based Cetera Financial Group has completed its $1.2 billion acquisition of Dallas-based Avantax Inc. in an all-cash deal that was initially announced in September. Avantax, formerly traded on Nasdaq, will now function as an independent entity within Cetera, bringing with it 3,111 financial professionals and managing $82.3 billion in assets under administration and $42 billion in assets under management as of September 30.
Avantax CEO Chris Walters expressed his appreciation for the support from the company’s board, leadership team, and community, stating that this acquisition strategically positions Avantax for future growth. Walters believes the partnership with Cetera will enhance Avantax’s unique tax-intelligent services, thereby fostering the continued success and growth of its financial professionals and affiliates.
Integration and Future Directions
Cetera, an independent wealth management and financial services provider, intends to maintain Avantax’s legal entities, brand, core technology, product offerings, and existing clearing and custody relationships. Mike Durbin, CEO of Cetera Holdings, described the acquisition as the start of an exciting new chapter that aligns with Cetera’s growth strategy by leveraging Avantax’s capabilities to benefit financial professionals and their clients.
Durbin highlighted that the integration of Avantax will enhance Cetera’s tax and wealth management expertise, complementing the existing Cetera Financial Specialist team. The inclusion of Avantax Planning Partners, an RIA managing over $7.8 billion in assets, strengthens Cetera’s succession solutions, offering a robust combined platform for Cetera’s advisor communities. Durbin assured a collaborative and thoughtful integration process to ensure a seamless transition for Avantax’s financial professionals, affiliates, and staff.
Expanding Service Capabilities and Strategic Alliances
The acquisition of Avantax by Cetera establishes a strategic partnership with Fidelity, enabling Cetera to expand into a multi-custodial platform and improve its ability to provide advanced tools and resources to affiliated advisors. This strategic move enhances Cetera’s service offerings and capabilities, reinforcing its commitment to delivering comprehensive support to its advisor network.
Durbin expressed confidence in the successful integration and future growth prospects, emphasizing the significant benefits for both Cetera and Avantax clients. The collaboration promises to deliver substantial value, ensuring long-term success and prosperity for both organizations and their clients.