Cetera Closes $1.2B Avantax Deal

Cetera Financial Group announced Tuesday that it has completed the acquisition of Avantax, a little more than two months after the $1.2 billion deal’s initial announcement in September.

The development brings more than 3,000 financial professionals to the Cetera network, along with some $82 billion in assets under administration and $42 billion in assets under management as of Sept. 30. 

In purchasing Avantax, Cetera gets advanced tax and retirement capabilities for wealthy and mass affluent clients, and the completed deal also adds Fidelity as a custodial partner for Cetera, making it easier for Cetera to buy other independent broker-dealers who use the custody platform.

Speaking with ThinkAdvisor in September, former Cetera CEO Larry Roth said the strategic drive behind the deal looked “very thoughtful and powerful.”

In a statement confirming the deal’s closing, Mike Durbin, CEO of Cetera Holdings, says the same.

“Partnering with Avantax is core to our growth strategy and capitalizes on Avantax’s many capabilities that benefit financial professionals, affiliates and their clients,” Durbin says. “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 advisors.”

According to Durbin, Cetera has retained Avantax’s legal entities, brand, core technology, product offerings and existing clearing and custody relationships. 

Another notable feature of the deal is the addition of Avantax Planning Partners, an employee-based registered investment advisor with over $7.8 billion in assets under management. Bringing this group onboard, the firm says, strengthens Cetera’s established succession planning solution and delivers “a powerful combined offering for Cetera’s advisor communities.”

Pictured: Mike Durbin, CEO of Cetera Holdings