Why Avantax Stock Soared 29% This Week
Shares of Avantax (NASDAQ: AVTA) are up 29% this week as of Thursday's close, according to data provided by S&P Global Market Intelligence, after the tax-focused financial planning and wealth management firm agreed to be acquired by privately held Cetera Financial Group.
In a press release dated Monday, Sept. 11, Avantax announced it has entered into a definitive agreement to be acquired by Cetera in an all-cash transaction valued at roughly $1.2 billion, net of Avantax's debt. More specifically, holders of Avantax common stock will receive $26 per share in cash -- a roughly 30% premium from Avantax's closing price on Sept. 8, 2023 -- subject to required withholding taxes. The stock closed Thursday at $25.59 per share.
"This transaction, upon closing, will deliver immediate cash value to Avantax stockholders," stated Avantax CEO Chris Walters. "It is a result of Avantax's strategic transformation and value creation efforts, which, when combined with the sale of TaxAct in December 2022, has unlocked significant value for our stockholders."
Source Fool.com
