Activist hedge fund Engine Capital LP has encouraged several other companies it also owns shares of to consider selling.
Dallas-based Avantax, which changed its name from Blucora at the beginning of this year, provides tax-focused wealth management services and platforms used by small business owners, tax and financial professionals and accounting firms.A minority investor in Dallas-based financial technology firm Avantx Inc. is urging the company’s board of directors to consider selling the company.
In a Monday letter to the board, Engine Capital LP laid out 10 reasons why it thinks a sale now would boost shareholder returns by as much as 34%. Engine Capital argues a sale could net $27 to $32 a share for investors. The company’s stock has been trading around $22. “Avantax’s stock continues to trade at a meaningful discount to its strategic value. We believe this is primarily due to the fact that Avantax is a subscale asset in the consolidating asset management industry where size is increasingly important,” said the Engine Capital letter.