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Avantax (NASDAQ:AVTA), a wealth management software firm, agreed to a sale to Cetera Financial Group for $26 a share in cash, or $1.2 billion. Avantax surged 28% in pre-market trading.
The purchase price represents a 30% premium to Avantax’s closing price on Friday, according to a statement on Monday. The deal is expected to close by the end of the year and isn’t subject to any financing conditions.
A sale comes after Bloomberg reported in July that Avantax (AVTA), formerly known as Blucora, was exploring options, including a possible sale.
The sale announcement also comes after activist Engine Capital said in June that Avantax (AVTA) should start exploring alternatives, including a potential sale. Engine Capital, which owns a 2% stake in AVTA, argued that the company could fetch between $27 and $32 per share.
Avantax agreed in November to sell its TaxAct tax software business to an affiliate of Cinven for $720 million in cash.
