Genstar-backed Cetera to take financial services firm Avantax private

• Cetera Financial Group is a retail investment advice platform and network of independent financial advisors
• The transaction is expected to close by the end of 2023
• When the deal closes, Avantax will no longer trade on the NASDAQ

Cetera Holdings, the holding company of Cetera Financial Group, a portfolio company of Genstar Capital, has agreed to acquire Avantax, a Dallas-based financial planning and wealth management firm, in a take-private deal. The transaction puts Avantax at a valuation of $1.2 billion.

Cetera Financial Group is a retail investment advice platform and network of independent financial advisors.

The transaction is expected to close by the end of 2023.

When the deal closes, Avantax will no longer trade on the NASDAQ.

“As we explored expanding Cetera’s capabilities into wealth management and tax expertise as a core component of our growth strategy, it quickly became clear that Avantax was an ideal target and a powerful fit for our business,” said Mike Durbin, CEO of Cetera Holdings in a statement. “As we enter Cetera’s next phase of evolution, our five-year growth strategy is off to a terrific start. Avantax will significantly build out Cetera’s capabilities in tax and wealth management.”

PJT Partners is acting as financial advisor to Avantax while Sidley Austin LLP and Haynes and Boone, LLP are serving as legal counsel. Morgan Stanley is serving as financial advisor to Cetera. UBS Investment Bank and BMO Capital Markets served as co-advisors to Cetera. Willkie Farr & Gallagher LLP is serving as legal counsel to Cetera.

Collectively, Avantax had $83.8 billion in total client assets as of June 30, 2023.

Home to more than 9,000 financial professionals and their teams, Cetera oversees approximately $341 billion in assets under administration and $121 billion in assets under management, as of June 30, 2023.