Affiliates of vehicles managed or advised by Bain Capital have wrapped up the previously announced $4.5bn acquisition of integrated technology, intelligent data, and wealth solutions provider Envestnet.
Following the completion of the deal, Envestnet’s common stock will no longer be traded on the New York Stock Exchange (NYSE), and it will continue operations as a privately held company.
The transaction included participation from Reverence Capital and Norwest.
Besides, BlackRock, Fidelity Investments, Franklin Templeton, and State Street Global Advisors, which hold minority positions in the private company, also participated in the deal.
Announced in July this year, the deal was initially unanimously approved by Envestnet’s board of directors. The company’s shareholders subsequently approved the transaction in September.
At a special meeting, around 99.33% of the votes cast were in favour of the merger.
Under the terms of the agreement, Envestnet’s shareholders received $63.15 in cash for each share of common stock.
Headquartered in Pennsylvania, Envestnet manages $6.5 trillion in platform assets and supervises approximately 20 million accounts, supporting more than 111,000 financial advisers.
The financial technology company offers an ecosystem of connected technology, insights, and solutions to help financial advisers drive business growth, enhance productivity, and deliver better outcomes for their clients.
Envestnet has various operating subsidiaries including Oberon Financial Technology, SIGMA Asset management, NetAssetManagement (India), Premier Advisors Fund Offshore, and others.
Envestnet board chair and interim CEO Jim Fox said: “This represents an exciting new chapter in Envestnet’s history, paving the way for accelerated growth and building on our position as a leading wealth management platform in the industry.”
For the transaction, Morgan Stanley & Co was exclusive financial adviser while Paul, Weiss, Rifkind, Wharton & Garrison acted as legal counsel to Envestnet. J.P. Morgan Securities served as lead financial adviser with Ropes & Gray as legal counsel to Bain Capital.
