Wells Fargo Buys H.D. Vest for $127 Million
In one of the first bank deals of its kind, Wells Fargo & Co. said Friday that it will pay about $127 million in cash for H.D. Vest, a large Irving, Texas-based financial planning firm that provides services through 6,000 independent tax and financial advisers.
H.D. Vest, the nation's largest provider of financial services delivered through tax professionals manages over $16 billion in assets for some 1.8 million individuals, families and small business across the U.S.
In the acquisition, which requires approval from banking regulators and shareholders of H.D. Vest, Wells Fargo will pay $21.03 in cash per share of H.D.
"H.D. Vest has built an outstanding reputation for successfully providing clients with financial, tax, and estate planning services, including securities, insurance, money management, business advice, and other financial services through a nationwide network of independent tax professionals," said Dennis Mooradian, president of Wells Fargo Private Client Services. "As such, H.D. Vest will remain a separate business unit within Wells Fargo. H.D. Vest's network of tax professionals and the client relationships they manage will benefit from the broad array of Wells Fargo capabilities, including personal trust services, mortgages, and insurance."
"Partnering with Wells Fargo will benefit all of our shareholders," said Herb D. Vest, Chairman and CEO of H.D. Vest. "Our shareholders will realize the value we have built up over the years that has been largely unrecognized in the stock market. In addition to our existing products and services, our representatives will be able to offer consumers an expanded breadth of offerings and strategic product mix to their valued clients as they deem appropriate. As part of Wells Fargo, our staff employees will have greater career opportunities because Wells Fargo believes, as we do, that our unique business model has strong growth potential in a nationwide financial services company."
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