Private equity firms Bain Capital and Reverence Capital have agreed to buy Envestnet in a deal that values the provider of wealth management technology and data at $4.5 billion.
Bain and Reverence are being backed by a consortium of minority investors including BlackRock, Fidelity Investments, Franklin Templeton, and State Street Global Advisors.
Envestnet's software and data is used by wealth managers and banks to help manage investments. The company manages over $6 trillion in assets, oversees nearly 20 million accounts, and is used by more than 109,000 financial advisors. It counts 16 of US's 20 biggest banks among its customers as well as 48 out of the 50 largest wealth management and brokerage firms.
The agreement, which has been unanimously approved by the Envestnet board and is slated to close in the fourth quarter, will see shareholders receive $63.15 in cash for each share.
"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," says Phil Loughlin, partner, Bain Capital.
Marvin Larbi-Yeboa, partner, Bain, adds: "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."