Blucora changes its name and sells its TaxAct software business

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What do you want to know

  • Blucora has agreed to sell TaxAct, its tax software business, for $720 million.
  • Blucora will focus on its IBD, Avantax Wealth Management, and its RIA, Avantax Planning Partners.

Blucora announced on Tuesday that it has agreed to sell TaxAct, its tax software business, to a subsidiary of private equity firm Cinven for $720 million in cash, subject to adjustment.

The transaction is expected to close by the end of 2022, subject to customary closing conditions and regulatory approvals, Blucora said.

Following completion of the transaction, Blucora said it would rebrand itself as Avantax and focus on its success in providing tax-focused wealth management through its independent broker Avantax Wealth Management and employee-based RIA. , Avantax Planning Partners.

During Blucora’s third quarter earnings call (ended Sept. 30), Chris Walters, the company’s CEO and President, told analysts, “While the decision to sell TaxAct may come as a surprise to some of you , the [Blucora] The Board of Directors has been consistent in its position to remain open to opportunities to create or unlock shareholder value.

Blucora “has begun the process of exploring such a transaction, and Cinven’s offer validates the…work our TaxAct team has done to grow the business by improving our products and customer service approach as well as progress significant achievements in acquiring customers by increasing the sophistication of our marketing efforts and scaling partnerships.

The company has “invested in improving products and customer service,” he said in the press release announcing the transaction. “This, coupled with strong marketing and partnership execution, has enabled the company to post strong financial performance and regain growing market share,” he said.

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