Berwyn, Pa.-based software company Envestnet Inc., is on its way to becoming a privately owned company once a new multi-billion-dollar acquisition agreement by Bain Capital LP is completed.
“The board and its advisors conducted a process to maximize value for shareholders,” said Envestnet CEO and Board Chairman Jim Fox on July 11. “I’m proud of what Envestnet has achieved over the years in becoming the leading wealth management platform in the industry.”
Bain Capital last week announced it has entered into a definitive agreement to purchase Envestnet, a leading provider of integrated technology, intelligent data and wealth solutions, in a transaction valuing the company at $4.5 billion.
Under the terms of the agreement, which has been unanimously approved by the Envestnet Board of Directors, Envestnet shareholders will receive $63.15 in cash for each share of common stock they own.
The transaction is expected to close in the fourth quarter of 2024, and once completed, Envestnet’s common stock will no longer be publicly listed, and it will become a privately held company.
“This is a great outcome for Envestnet’s clients and employees, and one that maintains its entrepreneurial spirit,” Envestnet co-founder Bill Crager said. “Envestnet is exceptionally well-positioned to continue to build a gateway to the future of financial advice. I couldn’t be more excited about the company going forward, its continued success and ability to serve more advisors — enabling them to deliver more holistic financial advice.”
Envestnet manages over $6 trillion in assets, oversees nearly 20 million accounts, and helps more than 109,000 financial advisors serve client financial goals via a comprehensive, integrated platform delivered at scale, according to Fox. The company currently supports over 800 asset managers on its Wealth Management Platform.
“Through its deeply connected ecosystem and innovative technology and data capabilities, Envestnet has built an industry-leading platform that the largest wealth management firms, RIAs, and broker-dealers rely on to power their businesses,” said Phil Loughlin, a partner at Bain Capital.
Envestnet was recently recognized by the 2024 T3/Inside Information Advisor Software Survey as a leader in financial planning, portfolio management, turnkey asset management programs, and billing solutions, according to the company.
“We look forward to working with Envestnet’s talented and experienced leadership team and supporting their growth strategy through organic and inorganic initiatives, making further investments in its differentiated product offering, and delivering enhanced value to customers and partners,” said Marvin Larbi-Yeboa, another Bain Capital partner.
Reverence Capital Partners also agreed to participate in the transaction, while strategic partners BlackRock, Fidelity Investments, Franklin Templeton, and State Street Global Advisors have committed to invest in the proposed transaction. Upon completion of the deal, the companies will hold minority positions in Envestnet.
“This is a validation of Envestnet’s proven ability to operate at market-leading scale — serving more assets, accounts, and advisors and effectively connecting our company and our technology,” said Tom Sipp, executive vice president of Envestnet Business Lines. “This is an exciting new chapter for Envestnet, our clients, our partners, and our employees.”
Together with Bain Capital, Sipp added that Envestnet is committed to investing in its platform and making it more customized, connected, and intelligent.
“As a private company, we can accelerate our ability to further elevate our market-leading platform with greater functionality and an even broader solution set that enables advisors to better serve clients at all stages of their financial life,” he said.
The post Take-private purchase of Envestnet valued at $4.5B appeared first on Pennsylvania Business Report .
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