Lovell Minnick Announces Sale of HD Vest to Blucora
RADNOR, PA – October 14, 2015 – Lovell Minnick Partners, a private equity firm specializing in financial and related business services companies, today announced the signing of a definitive agreement in which HD Vest Financial Services, Inc. (“HD Vest”) will be acquired by Blucora, Inc. (NASDAQ: BCOR). HD Vest is the leading independent broker-dealer providing wealth management and advisory solutions specifically for tax professionals. The transaction is valued at approximately $580 million.
Based in Irving, Texas, HD Vest’s independent network is comprised of over 4,500 tax and non-tax financial professionals who manage over $36 billion in client assets and provide comprehensive investment planning solutions for individuals, families and institutions. Lovell Minnick co-sponsored the management buyout of HD Vest from Wells Fargo & Company (NYSE: WFC) in 2011.
“This transaction highlights how HD Vest has firmly established itself as an industry leader in the independent broker dealer market. We are pleased that the company and its management team have been recognized for the significant value they’ve created,” said Spencer Hoffman, a Managing Director at Lovell Minnick Partners. “Our partnership with the HD Vest team has been very rewarding and exciting. This transaction is a logical next step for HD Vest that will position the company for continued growth.”
“In the four years since we completed our management buyout, with the support of our partners and Board, we’ve been successful both in investing in the company while also driving significant growth,” said Roger Ochs, President and CEO of HD Vest. “Through expanded product offerings to meet our advisors’ client needs, through an energized approach to identifying, recruiting, and educating HD Vest advisors, and through the development of proprietary technology designed specifically for our advisors, we’ve taken HD Vest to the next level. Lovell Minnick’s and Parthenon’s support was critical in achieving those goals.”
The transaction is expected to close late in the fourth quarter 2015 or early first quarter 2016, subject to customary closing conditions and regulatory approvals.
About HD Vest Financial Services®
Since its inception in 1983, HD Vest Financial Services has supported an independent network of tax and non-tax professionals who provide comprehensive financial planning solutions including securities, insurance, money management services, and banking solutions. HD Vest is ranked as one of the top 20 independent broker-dealer firms1 with over 4,500 independent contractors managing over $36 billion in assets for individuals, families and small businesses in all 50 states.2 For more information, please visit www.hdvest.com. HD Vest Financial Services® is the holding company for the group of companies providing financial services under the HD Vest name. Securities offered through HD Vest Investment ServicesSM, Member SIPC, Advisory services offered through HD Vest Advisory ServicesSM.
Blucora, Inc. (NASDAQ: BCOR) operates a diverse group of Internet businesses. Its mission is to deliver long-term value to its customers, partners, and shareholders through financial discipline, operational expertise, and technology innovation. Named one of Fortune® Magazine’s 100 Fastest-Growing Companies for the past two years, Blucora’s online businesses reach millions of users worldwide every day. Blucora is headquartered in Bellevue, Washington. For more information, please visit www.Blucora.com. Follow and subscribe to Blucora on Twitter, LinkedIn, and YouTube.
About Lovell Minnick Partners
Lovell Minnick Partners LLC is a private equity firm with expertise in investing in the financial and related business services sectors. Lovell Minnick provides developing companies with equity capital to support private company recapitalizations, leveraged buyouts, and pursue growth initiatives. Since its inception in 1999, Lovell Minnick Partners has raised over $1.4 billion in committed capital and has completed investments in over 30 companies. Targeted investment areas include asset management, financial product distribution, insurance, banks, specialty finance, and related technology and business services.
1 Investment Advisor 2014 Broker-Dealer Reference Guide, which measured/ranked the top 25 independent broker-dealers by annual revenue.
2 As of August 31, 2015