Bain Capital to buy Envestnet in $4.5bn deal

Envestnet said on Thursday that it has agreed to be bought by Bain Capital in a $4.5bn deal.

The Pennsylvania-based financial technology firm said that strategic partners BlackRock, Fidelity Investments, Franklin Templeton, and State Street Global Advisors have committed to invest in the proposed deal. Upon completion, they will hold minority positions in the private company.

Under the terms of the transaction, which is expected to close in the fourth quarter, Envestnet shareholders will receive $63.15 per share in cash.

Envestnet manages over $6trn in assets, oversees nearly 20m 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".

Envestnet chair and interim chief executive 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."

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."