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Blucora To Buy 1st Global; Raises Q1 Earnings Guidance - Quick Facts

Blucora, Inc. (BCOR) announced an agreement to acquire 1st Global, Inc., a tax-focused wealth management company. The transaction is structured as a stock purchase with a purchase price of $180 million. 1st Global, based in Dallas, Texas, serves about 850 independent advisors with approximately $18 billion in total client assets and $9 billion in for-fee advisory assets.

Blucora estimates the transaction can generate $23 - $24 million of run-rate adjusted EBITDA accretion by the end of 2019. The deal is expected to be accretive to EPS, and other key performance indicators.

Blucora has updated its outlook for the first quarter of 2019. Non-GAAP net income per share is now expected in a range of $1.41 - $1.49, revised up from prior guidance range of $1.19 - $1.26. Revenue is now expected to be in a range of $224.0 million - $229.0 million, compared to prior outlook range of $213.5 million - $218.5 million. The company said the improved outlook is primarily the result of higher expected tax preparation revenue, driven by price contribution as well as the timing of volume between quarters.

Separately, Blucora announced its Board has authorized the repurchase of up to $100 million of its common stock. The authorization is effective immediately and does not have a specified expiration date. The company had 48 million shares outstanding as of December 31, 2018.

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