Blucora jumps 9% after agreeing to sell TaxAct for $720M

Nov. 01, 2022 9:01 AM ETAvantax, Inc. (AVTA)By: Joshua Fineman, SA News Editor

Blucora (NASDAQ:BCOR) rose 9% in premarket trading after agreeing to sell its TaxAct tax software business to an affiliate of Cinven for $720 million in cash.
After the sale of TaxAct, Blucora (BCOR) will rebrand as Avantax and focus on providing tax-focused wealth management through its independent broker dealer Avantax Wealth Management and its employee-based registered investment advisor Avantax Planning Partners, according to a statement.
The closing of the TaxAct sale is not subject to any financing condition. Blucora (BCOR) expects the transaction to deliver after-tax net cash proceeds of approximately $620 million.
The TaxAct sale comes after activist investor Ancora Holdings in February 2021 pushed for Blucora (BCOR) to explore strategic alternatives for its tax services business, including a sale.
Also Blucora (BCOR) reported Q3 results earlier on Tuesday.