Envestnet, Inc. (NYSE: ENV), a prominent provider of integrated technology, intelligent data, and wealth solutions, has recently announced that it has entered into a definitive agreement to be acquired by Bain Capital in a transaction valuing the company at a staggering $4.5 billion, which equates to $63.15 per share. This transaction was also marked by the involvement of Reverence Capital.
Envestnet has made significant strides in the financial industry, as it currently manages over $6 trillion in assets, overseeing nearly 20 million accounts. The company has also enabled more than 109,000 financial advisors to better meet client financial goals with one of the most comprehensive, integrated platforms delivered at scale in a unified, engaging digital experience. Envestnet was recently recognised as a leader in financial planning, portfolio management, TAMP, and billing solutions by the 2024 T3/Inside Information Advisor Software Survey, demonstrating the strength, depth, and breadth of its industry-leading Wealth Management Platform.
Jim Fox, Board Chair and Interim CEO of Envestnet, expressed his pride in the company’s achievements, acknowledging that Envestnet has indeed become the leading wealth management platform in the industry. He also stated that the board and its advisors conducted a process to maximise value for shareholders.
Phil Loughlin, a Partner at Bain Capital, expressed excitement about the acquisition, stating that through its deeply connected ecosystem and innovative technology and data capabilities, Envestnet has built a platform relied on by the largest wealth management firms, RIAs, and broker-dealers to power their businesses.
Upon completion of the transaction, Envestnet’s common stock will no longer be publicly listed, and the company will become a privately held company. As a private company, Envestnet aims to further elevate its 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, according to Tom Sipp, EVP Business Lines of Envestnet.
In light of the transaction, Envestnet’s clients and employees can remain confident in the company’s continued success and ability to serve more advisors, according to Bill Crager, Co-founder of Envestnet. He also mentioned that the company is well positioned to continue building a gateway to the future of financial advice.
The transaction is expected to close in the fourth quarter of 2024, subject to the satisfaction of customary closing conditions, including receipt of approval by Envestnet’s shareholders and required regulatory approvals. Morgan Stanley & Co. LLC is acting as the exclusive financial advisor, and Paul, Weiss, Rifkind, Wharton & Garrison LLP is acting as legal counsel to Envestnet.
In conclusion, this acquisition by Bain Capital stands as a testament to Envestnet’s position in the industry and its ability to operate at market-leading scale while serving more assets, accounts, and advisors, thereby effectively connecting the company and its technology. This transaction is indeed a significant milestone for Envestnet and all its stakeholders.