Blucora, Inc. (“Blucora” or the “Company”) (NASDAQ: BCOR) today
announced the completion of its previously announced sale of its
tax software business, TaxAct, to an affiliate of Cinven for $720
million in cash, with after-tax net cash proceeds of approximately
$620 million. Blucora expects to return $400 - $450 million of
capital to shareholders and today announced its plan to repurchase
up to $250 million of its shares of common stock through a modified
"Dutch Auction" tender offer in the first quarter of 2023. In
addition, its Board of Directors has authorized the repurchase of
up to $200 million of Blucora common stock.
With the completion of the TaxAct sale, Blucora
is now a pure-play wealth management company and is moving forward
with its rebranding to Avantax, focusing on its success in
providing tax-focused wealth management through its independent
broker dealer (IBD), Avantax Wealth Management, and its
employee-based registered investment advisor (RIA), Avantax
Planning Partners. The rebranding is expected to occur in January
2023.
“Today’s announcement marks an important
milestone for Blucora. In Avantax and TaxAct, we have built two
exceptional businesses, and at the right time and with the right
partner, we have been able to realize significant value for
shareholders and align TaxAct with a growth-oriented sponsor who
will support the business’ continued growth,” said Chris Walters,
President and Chief Executive Officer.
“We are well-positioned to continue to execute
on our vision for Avantax, while at the same time return
significant capital to our shareholders. These actions reflect
Blucora’s disciplined stewardship of shareholder capital. We look
forward to moving forward as Avantax and building on our momentum
delivering holistic, tax-focused financial planning and investment
solutions,” said Walters.
The Company also disclosed today that, as a
result of Blucora’s reduced scale and its focus on its wealth
management business, two of the Company’s directors, Steven Aldrich
and Mary Zappone, will not stand for re-election in 2023, and the
Board of Directors plans to reduce the size of the Board from 11 to
nine directors effective as of the 2023 annual meeting.
“The Board would like to thank Steve Aldrich and
Mary Zappone for their service and absolute dedication to the
Company and its shareholders. We appreciate their contributions as
the Company grew two extraordinary businesses during what were very
volatile times. We wish them the best in their future endeavors,”
said Georganne Proctor, Blucora’s Chair of the Board.
Advisors
Centerview Partners LLC and PJT Partners are
acting as financial advisors, and Haynes and Boone, LLP and Sidley
Austin LLP are serving as legal advisors to Blucora.
About Blucora®
Blucora, Inc. (NASDAQ: BCOR) is a provider of
data and technology-driven solutions that empower people to improve
their financial wellness. Blucora is a pure-play wealth management
company that, through its Avantax Wealth Management and Avantax
Planning Partners brands, has a collective $72.6 billion in total
client assets as of September 30, 2022.
About Avantax Wealth
Management®
Avantax Wealth Management® offers a
tax-advantaged approach for comprehensive financial planning.
Avantax’s Tax-Smart approach helps clients leverage taxes to create
financial growth opportunities. Most financial companies treat
taxes as an afterthought, or not at all, even though taxes are one
of life’s most complex and costly expenses. Avantax technology, tax
and wealth management insights are used by Avantax Financial
Professionals to uncover and tailor opportunities across their
clients’ financial lifecycles to help enable better long- term
outcomes. The wealth management segment of Blucora, Inc. (NASDAQ:
BCOR), which includes the Avantax Wealth Management® and Avantax
Planning Partners℠ brands, had a collective $72.6 billion in total
client assets as of September 30, 2022. For more information,
please visit us at www.avantax.com or on LinkedIn and
Facebook.
About Avantax Planning
Partners℠
Avantax Planning Partners℠ is an employee-based
RIA (registered investment advisor), insurance agency and wealth
management business that partners with CPA firms to provide their
consumer and small-business clients with holistic financial
planning and advisory services, as well as retirement plan
solutions through Avantax Retirement Plan Services. Avantax
Planning Partners and CPA firms help clients pursue their financial
goals through strategies such as asset management, estate planning,
retirement planning, tax planning, risk management and more. The
wealth management segment of Blucora, Inc. (NASDAQ: BCOR), which
includes the Avantax Planning Partners℠ and Avantax Wealth
Management® brands, had a collective $72.6 billion in total client
assets as of September 30, 2022. For more information, please visit
us at www.avantax.com or on LinkedIn and Facebook.
Forward-Looking Statements
This release contains forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, including without limitation, statements regarding the
anticipated return of capital to shareholders, including the
expected timing and use of a modified Dutch auction tender offer,
the anticipated timing of rebranding to Avantax, and plans to
reduce the size of the Company’s board of directors.
Forward-looking statements provide current expectations of future
events based on certain assumptions and include any statement that
does not directly relate to any historical or current fact.
Forward-looking statements can also be identified by words such as
“anticipates,” “believes,” “plans,” “expects,” “future,” “intends,”
“may,” “will,” “would,” “could,” “should,” “estimates,” “predicts,”
“potential,” “continues,” “target,” “outlook,” and similar terms
and expressions, but the absence of these words does not mean that
the statement is not forward-looking. Actual results may differ
significantly from management’s expectations due to various risks
and uncertainties including, but not limited to: our ability to
effectively compete within our industries; our ability to generate
strong performance for our clients and the impact of the financial
markets on our clients’ portfolios; our expectations concerning the
revenues we generate from fees associated with the financial
products that we distribute; our ability to attract and retain
financial professionals, employees, clients, and customers, as well
as our ability to provide strong customer/client service; our
future capital requirements and the availability of financing, if
necessary; our ability to meet our current and future debt service
obligations, including our ability to maintain compliance with our
debt covenants; any downgrade of the Company’s credit ratings; the
impact of new or changing legislation and regulations (or
interpretations thereof) on our business, including our ability to
successfully address and comply with such legislation and
regulations (or interpretations thereof) and increased costs,
reductions of revenue, and potential fines, penalties, or
disgorgement to which we may be subject as a result thereof; risks,
burdens, and costs, including fines, penalties, or disgorgement,
associated with our business being subjected to regulatory
inquiries, investigations, or initiatives, including those of the
Financial Industry Regulatory Authority, Inc. and the Securities
and Exchange Commission (the “SEC”); risks associated with legal
proceedings, including litigation and regulatory proceedings; our
ability to close, finance, and realize all of the anticipated
benefits of acquisitions, as well as our ability to integrate the
operations of recently acquired businesses, and the potential
impact of such acquisitions on our existing indebtedness and
leverage; our ability to retain employees and acquired client
assets following acquisitions; any compromise of confidentiality,
availability or integrity of information, including cyberattacks;
our ability to manage leadership and employee transitions,
including costs and time burdens on management and our board of
directors related thereto; political and economic conditions and
events that directly or indirectly impact the wealth management
industry; the impact of the continuing COVID-19 pandemic on our
results of operations and our business, including the impact of the
resulting economic and market disruption and changes in customer
behavior related to the foregoing; our ability to maintain our
relationships with third-party partners, providers, suppliers,
vendors, distributors, contractors, financial institutions,
industry associations, and licensing partners, and our expectations
regarding and reliance on the products, tools, platforms, systems,
and services provided by these third parties; our ability to
respond to rapid technological changes, including our ability to
successfully release new products and services or improve upon
existing products and services; risks related to goodwill and
acquired intangible asset impairment; our ability to develop,
establish, and maintain strong brands; risks associated with the
use and implementation of information technology and the effect of
security breaches, computer viruses, and computer hacking attacks;
our ability to comply with laws and regulations regarding privacy
and protection of user data; our assessments and estimates that
determine our effective tax rate; our ability to protect our
intellectual property and the impact of any claim that we infringed
on the intellectual property rights of others; disruptions to our
business and operations resulting from the transition services we
are providing in connection with the sale of our tax software
business (the “TaxAct Sale”); our failure to realize the expected
benefits of the TaxAct Sale; our inability to return capital to
stockholders in the amount anticipated if we are unable to secure
financing on desirable terms after the consummation of the TaxAct
Sale; and the effects on our business of actions of activist
stockholders. A more detailed description of these and certain
other factors that could affect actual results is included in
Blucora’s most recent Annual Report on Form 10-K and most recent
Quarterly Report on Form 10-Q filed with the SEC and reflect our
good faith beliefs, assumptions, and expectations but are not
guarantees of future performance or events. Readers are cautioned
not to place undue reliance on these forward-looking statements,
which speak only as of the date hereof. The Company undertakes no
obligation to update any forward-looking statements to reflect
events or circumstances after the date hereof, except as may be
required by law.
Investors:Dee LittrellInvestor Relations(972)
870-6463ir@blucora.com
Media:Gagnier CommunicationsDan Gagnier (646)
569-5897blucora@gagnierfc.com
Blucora (NASDAQ:BCOR)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
Blucora (NASDAQ:BCOR)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024