Wealthtech innovator Envestnet has agreed to be acquired by Bain Capital in a deal valued at $4.5 billion.
Also participating in the deal is Reverence Capital. Strategic partners BlackRock, Fidelity Investments, Franklin Templeton, and State Street Global Advisors also have agreed to invest in the transaction.
Envestnet has been a Finovate alum since 2016. The company most recently demoed its technology on the Finovate stage at FinovateFall 2021.
Technology, data, and wealth solutions company Envestnet has agreed to be acquired by Bain Capital. The transaction values Envestnet at $4.5 billion or $63.15 per share. Also participating in the deal is Reverence Capital, along with a number of strategic partners that have agreed to invest in the transaction. These partners include BlackRock, Fidelity Investments, Franklin Templeton, and State Street Global Advisors, and each will hold a minority position in the company once the transaction is completed.
“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,” Envestnet EVP Business Lines Tom Sipp said. Calling the acquisition an “exciting new chapter,” Sipp highlighted the opportunities that lie ahead in Envestnet’s status as a private company rather than a public one. “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.”
A giant in the field of wealth management, Envestnet manages more than $6 trillion in assets, nearly 20 million accounts, and counts 109,000+ financial advisors as users of its technology. This includes more than 800 asset managers that use Envestnet’s Wealth Management Platform. Founded in 1999 and headquartered in Berwyn, Pennsylvania, the company works with 17 of the 20 largest banks in the U.S., and 48 of the 50 largest wealth management and brokerage firms. This year, Envestnet has forged partnerships with Salesforce, Australian wealthtech HeirWealth, insurtech Ladder, and fellow Finovate alum Ocrolus, which specializes in financial document automation and analysis.
Envestnet made its Finovate debut at FinovateEurope 2016. More recently, the company brought its data aggregation and analytics platform, Envestnet | Yodlee, to FinovateFall 2021 in New York. At the conference, the company showed how the platform leverages Conversational AI to deliver hyper-personalized financial insights and goals-based micro-savings applications.
Takeover talk had been circulating around Envestnet for months. A report in Bloomberg from late May indicated that the company was “drawing takeover interest from buyers including Advent International and GTCR.” The report also noted an uptick in private equity’s interest in the sector, crediting “reliable cash flows” that can be “scaled up through acquisition.”
“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.”
Photo by cottonbro studio
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