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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.
Shares of Avantax surged 27.8% to $25.49 in premarket trading.
After the deal closure, Avantax will be 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.
Engine had said Avantax was worth much more to a larger firm than as a standalone entity, considering the company’s cost structure, pressures on profitability and tough competition.
Avantax had $83.8 billion in total client assets, as of June 30, 2023.
