Envestnet confirms $4.5 billion acquisition
Envestnet has confirmed that it will soon be purchased by Bain Capital and Reverence in what promises to be a seismic take-private deal.
The wealth tech behemoth announced Thursday its agreement to be acquired by Bain Capital in a $4.5 billion transaction. The deal, which values Envestnet at $63.15 per share, includes participation from Reverence Capital.
Strategic partners including BlackRock, Fidelity Investments, Franklin Templeton, and State Street Global Advisors have committed to investing in the transaction, retaining minority stakes in the private entity.
Bain Capital also received financial advisory services for the transaction from RBC Capital Markets, BMO Capital Markets, Barclays, and Goldman Sachs, who all provided debt financing for the transaction.
The deal, unanimously approved by Envestnet’s board, is expected to close in the fourth quarter of 2024, pending customary conditions. Upon the deal’s completion, Envestnet will delist its shares and continue operating as a private company.
The possibility of the transaction first came to light Tuesday afternoon with a report from Reuters citing unnamed sources who were familiar with the matter.
Envestnet oversees more than $6 trillion in assets and supports nearly 20 million accounts. The platform assists over 109,000 financial advisors in achieving client financial goals, leveraging an integrated digital experience. The company’s Wealth Management Platform also supports over 800 asset managers.
“The Board and its advisors conducted a process to maximize value for shareholders,” Jim Fox, board chair and interim CEO of Envestnet said in a statement Thursday. “I’m proud of what Envestnet has achieved over the years in becoming the leading wealth management
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