Wealth technology platform provider Envestnet has agreed to be acquired by alternative investment firm Bain Capital in a deal that values the former at $4.5bn.
Under the terms of the definitive agreement, shareholders of the New York Stock Exchange (NYSE) listed Envestnet will receive $63.15 in cash for each share of common stock they hold.
Following the completion of the proposed deal, Envestnet will become a privately held company and its common stock will no longer be publicly listed.
Private investment firm Reverence Capital Partners and other strategic partners including Fidelity Investments, BlackRock, Franklin Templeton, and State Street Global Advisors have committed to invest in the transaction.
Upon the closing of the transaction, the partners will hold minority positions in the private company.
Bain Capital partner Marvin Larbi-Yeboa said: “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.”
Based in the US, Envestnet manages more than $6 trillion in assets. It supervises around 20 million accounts and allows over 109,000 financial advisers to address client financial goals.
The deal has been unanimously approved by the Envestnet’s board of directors.
Envestnet board chair and interim CEO Jim Fox said: “The Board and its advisors conducted a process to maximise value for shareholders.
“I’m proud of what Envestnet has achieved over the years in becoming the leading wealth management platform in the industry.”
Subject to the satisfaction of customary conditions, including receipt of approval by Envestnet’s shareholders and requisite regulatory approvals, the deal is anticipated to be completed in Q4 2024.
For the transaction, Morgan Stanley & Co. served as exclusive financial adviser while Paul, Weiss, Rifkind, Wharton & Garrison is legal counsel to Envestnet.
J.P. Morgan Securities acted as lead financial adviser, and Ropes & Gray is legal counsel to Bain Capital.
