In a $4.5 billion deal, Envestnet will be acquired by private equity firm Bain Capital, the financial software provider announced on Thursday.
Based in Berwyn, Pennsylvania, Envestnet provides data for financial institutions and investment research firms and software for wealth managers. 16 of the top 20 US banks and 48 of the top 50 wealth management and brokerage companies are among its clientele.
Earlier this week, Reuters exclusively revealed that the companies were nearing a deal that would value Envestnet at a level comparable to its stock price.
The cash price per share being offered by Bain Capital is $63.15. Before the Reuters report, the closing price of Envestnet’s stock was $63.07.
Envestnet appointed three new directors last year to resolve a board challenge from activist investor Impactive Capital, which had been pressuring the company to increase performance by reducing expenses.
Envestnet is undergoing a leadership change. CEO Bill Crager announced in January that he would leave this position and rejoin the company as a senior adviser beginning in April. In the first quarter, Envestnet posted a profit that exceeded expectations. It announced last month that it was developing specialized investment strategies in collaboration with industry leaders BlackRock, Fidelity Investments, Franklin Templeton, and State Street Global Advisors.
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