Envestnet Acquires Redi2 Technologies, Creating Revenue, Billing Management Platform

Envestnet announced that it has acquired Redi2 Technologies, Inc., a provider of revenue management and hosted fee-billing solutions for the financial services industry.

The deal aims to “create more connections across the Envestnet financial wellness ecosystem for asset managers, wealth managers, and registered investment advisors (RIAs).”

Tom Sipp, EVP of Business Lines for Envestnet, said:

“Redi2 is a pioneer and innovator in the cloud-based delivery of wealth and investment management billing software, making them an ideal partner as we continue to strengthen our financial wellness ecosystem.”

Sipp added:

“With Redi2’s solutions, we become the industry leading provider of revenue and billing tools needed by all industry constituents—including advisors, wealth firms, and asset managers. This acquisition enhances our strategic enablement of service and data, and over the next two years will create operating leverage by bringing Envestnet and Redi2’s administrative, revenue, and billing services together.”

Redi2’s platform “enables fee calculation, invoice creation, payouts and accounting, and billing compliance.”

Its Cloud-based, single-sign-on product portfolio includes:

  • Revenue Manager: Provides client revenue accounting and billing services for asset managers, for which contracts often have high levels of institutional-grade complexity around fee structures, invoicing rules, and accounting integrations.
  • Wealth Manager: Delivers multi-party billing and payouts for broker-dealers and turnkey asset management programs (TAMPs), which often require fees to be calculated for multi-entity supply chains.
  • BillFin™: Offers advisory billing and invoicing, including fee-splitting and flexible billing setup functionalities, for financial advisors such as RIAs, wealth managers, and financial planners.

Fermin Garcia, President and COO of Redi2 Technologies, Inc., said:

“Over the past two decades, we have created a uniquely powerful and robust SaaS platform to help asset and wealth managers of all sizes tackle their most complex billing requirements and revenue collection workflows within an intelligently designed digital platform. We are tremendously excited about becoming part of the Envestnet ecosystem, and joining forces with their talent, technology platform, and capabilities, to provide asset and wealth managers with greater power to monetize their billing and payment volumes for the benefit of their firms and their clients.”

Rich Aneser, Chief Strategy Officer at Envestnet, said:

“The last two years have accelerated an increasing demand for digitization. We are continuously evaluating opportunities to enhance our financial wellness ecosystem. This latest acquisition reinforces our strategy to build out our ecosystem with technology, solutions, and data that further our industry leadership, and create scale and operating leverage for our business.”

Seth Johnson, Chairman and CEO of Redi2 Technologies, Inc., remarked:

“We are thrilled to become part of Envestnet and help serve their broad client and prospect base through our best-in-class billing and revenue management solutions. Whether you are an asset manager, a TAMP, a broker-dealer, a wealth division of a bank, or an RIA, Envestnet now provides billing solutions which are purpose-built for each organization’s specific needs.”

Terms of the acquisition “were not disclosed.”

Key Banc Capital Markets “acted as financial advisor to Redi2.”

Nutter McClennen & Fish LLP “acted as legal counsel to Redi2.”

Mayer Brown LLP “acted as legal counsel to Envestnet.”

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