(RTTNews) – Avantax, Inc. (AVTA), a tax-focused wealth management company, announced on Monday that it has entered into a definitive agreement to be acquired by Aretec Group, Inc. dubbed as Cetera Holdings, the holding company of Cetera, a financial advisor for around $1.2 billion.
Under the agreement terms, Cetera Holdings will acquire the company in an all-cash transaction which includes Avantax’s net debt.
The transaction is expected to close by the end of the year.
Shareholders of Avantax common stock will receive $26.00 in cash per share. The purchase price represents a premium of around 30% to the closing price of shares of Avantax common stock on September 8, the last full trading day before the announcement of this acquisition.
Upon transaction close, Avantax will become a standalone business unit having 3,078 Avantax financial professionals, representing $83.8 billion in assets under administration and $42.6 billion in assets under management as of June 30, within the Cetera family.
With this acquisition, Cetera will retain Avantax’s legal entities, core technology, product offerings, and existing clearing and custody relationships.
In pre-market, shares of Avantax are trading at $25.44 up 27.32% on Nasdaq.