On Tuesday, New York-based fintech company AdvisorEngine announced it has acquired CRM Software, Inc., also known as Junxure, a CRM (client relationship management) software provider. The combined company will pair digital solutions with consulting services to help financial advisors use technology as a competitive advantage.
According to AdvisorEngine, the acquisition further enhances the fintech company’s open-architecture ecosystem and continues the company’s approach of connecting disparate technologies, data, and workflows to create a unified user experience. AdvisorEngine noted that Junxure users will not experience any changes in service and will continue to be supported by their dedicated Junxure client success team. While sharing more details about the acquisition, Rich Cancro, AdvisorEngine Founder and CEO, stated:
“The next frontier of innovation within financial services is happening at the intersection of personal relationships, data science and automation – which makes native CRM functionality especially powerful. I am thrilled to bring the companies together while maintaining Junxure’s culture of innovation and independence.”
Greg Friedman, Junxure President and Co-Founder, also commented:
“This combination opens up new possibilities for Junxure clients across prospecting, client engagement, financial planning, portfolio construction and business operations. Having known Rich for years, I am truly excited about this next chapter for Junxure clients and employees.”
As part of the acquisition, WisdomTree Investments, Inc., the global ETP sponsor driven by research and technology, and AdvisorEngine’s largest shareholder, has committed to lend up to $30 million of working capital to AdvisorEngine, which includes providing an initial funding amount of $22 million. AdvisorEngine reported that the majority of the proceeds will be used to fund the acquisition, with the remainder to be used for future technology development and other growth initiatives. Jarrett Lilien, Executive Vice President–Head of Emerging Technologies for WisdomTree, added:
“WisdomTree is proud to be part of AdvisorEngine’s open-architecture ecosystem. We see compelling opportunities to help advisors create operational alpha through technology and differentiate investment performance through smart portfolio construction.”