Blucora, which owns HD Vest and provides tax-driven financial solutions, entered an agreement to acquire 1st Global, a Dallas-based, tax-focused wealth management independent broker-dealer for $180 million.

The transaction creates a dominant player in the IBD space for CPAs and other tax-focused advisors. Blucora acquired HD Vest, also based in Dallas, in October 2015 for $580 million, a price that stunned the IBD world.

1st Global describes itself as specializing in serving large, multi-partner accounting firms, while HD Vest focuses on converting individual tax preparers into financial advisors. Ironically, 1st Global was founded three decades ago by former HD Vest executives who wanted to move upstream and work with a subset of CPAs and tax professionals who were more sophisticated in wealth management and had more substantial practices.

Today, 1st Global services about 850 advisors with $18 billion in total assets. When combined with HD Vest, Blucora will have a total of 4,500 advisors and $60 billion in assets.

Nasdaq-listed Blucora expects the transaction to be accretive to its earnings per share. In a prepared statement, Blucora estimates that the accretive effects of the transaction would add $23 million to $24 million in adjusted EBITDA by year-end. Blucora said it planned to use the combined entity's strong cash flow to deleverage its balance sheet.

Among the two IBDs, 1st Global is believed to have higher advisor productivity. Adding its operations to Blucora's existing business should generate a greater return on client assets.

According to Financial Advisor's annual broker-dealer survey that will come out in AApril, HD Vest ended 2018 with 3,593 advisors generating $373.6 million in revenues, or $103,861 per rep.