The price for Blucora to acquire HK Financial Services has been slashed by 37.5 percent from the previously announced purchase price. Blucora said this month the agreement has been dropped to $100 million from $160 million based on current economic conditions.
The new agreement adds a financing contingency and sets a closing window that ends on October 1. The close can be extended by mutual agreement and there is the potential for potential for performance-based earn-out payments over time based on achieving assets targets from the original agreement.
In its latest statement, Blucora said HKFS ended the first quarter with about $4.1 billion in total client assets with net inflows of approximately $214 million.
