Blucora: Company Transition After TaxAct Sale

Nov. 03, 2022 3:41 AM ETAvantax, Inc. (AVTA)
Gary Bourgeault profile picture
Gary Bourgeault
12.99K Followers

Summary

  • Blucora sold its TaxAct business to a Cinven affiliate for $720 million in cash. After taxes, the deal is expected to have net cash proceeds of $620 million.
  • The bulk of the proceeds will be used to pay down debt, post-paydown capital projected to be from $400-$450 million after close, much of which will be returned to shareholders.
  • After the divestment, Blucora will position itself as a "tax-focused" wealth management business.
  • We'll look at recent earnings and how management sees the company post-TaxAct.

Businessman consulting legal expert

MesquitaFMS

The big news for Blucora, Inc. (BCOR) is the announcement it entered into a deal to sell of TaxAct to an affiliate of Cinven, heralding a transition of the company to a "tax-focused wealth management business."

After the deal

This article was written by

Gary Bourgeault profile picture
12.99K Followers
I am a former investment advisor and owner of several businesses. These days I invest only for myself while continuing to write on a variety of financial and economic topics.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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