Envestnet, Inc. (NYSE: ENV), a provider of integrated technology, intelligent data and wealth solutions, announced that it has entered into a definitive agreement to be acquired by Bain Capital in a transaction valuing the company at $4.5 billion ($63.15 per share).
Reverence Capital also agreed “to participate in the transaction.”
Strategic partners BlackRock, Fidelity Investments, Franklin Templeton, and State Street Global Advisors have committed to invest in “the proposed transaction, and upon its completion they will hold minority positions in the private company.”
Envestnet manages over $6 trillion in assets, “oversees nearly 20 million accounts, and enables 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.”
The company has had success “enhancing the advisor and investor experience, and currently supports over 800 asset managers on its Wealth Management Platform.”
Envestnet was recently recognized “by the 2024 T3/Inside Information Advisor Software Survey as a leader in Financial Planning, Portfolio Management, TAMP and Billing Solutions — reinforcing the strength, depth and breadth of its industry-leading Wealth Management Platform and commitment to supporting advisor growth and productivity through its deeply connected ecosystem.”
Jim Fox, Board Chair and Interim CEO of Envestnet said:
“The Board and its advisors conducted a process to maximize value for shareholders. I’m proud of what Envestnet has achieved over the years in becoming the leading wealth management platform in the industry.”
Phil Loughlin, a Partner at Bain Capital said:
“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. 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,” added Marvin Larbi-Yeboa, a Partner at Bain Capital.”
Milton Berlinski, Co-Founder and Managing Partner at Reverence Capital Partners:
“Given Envestnet’s scale and competitive advantages in an industry that benefits from strong fundamental tailwinds, we believe the Company is strategically positioned to achieve its next phase of growth.”
Under the terms of the agreement, which has been “unanimously approved by the Envestnet Board of Directors, Envestnet shareholders will receive $63.15 in cash for each share of common stock they own.”
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.”
Upon completion of the transaction, Envestnet’s common stock “will no longer be publicly listed, and Envestnet will become a privately held company.”
Morgan Stanley & Co. LLC is “acting as exclusive financial advisor, and Paul, Weiss, Rifkind, Wharton & Garrison LLP is acting as legal counsel to Envestnet.”
J.P. Morgan Securities LLC is acting “as lead financial advisor, and Ropes & Gray LLP is acting as legal counsel to Bain Capital.”
RBC Capital Markets, BMO Capital Markets, Barclays, and Goldman, Sachs & Co. LLC provided “committed debt financing for the transaction and financial advisory services to Bain Capital.”
Funds managed by Ares Management, funds managed by Blue Owl Capital and Benefit Street Partners also provided “committed debt financing for the transaction.”