Bain Capital Acquires Financial Software Company Envestnet in $4.5 Billion Deal

Bain Capital is set to acquire Envestnet in a $4.5 billion deal, supported by a group of investors including BlackRock and Fidelity Investments, the financial software provider announced on Thursday. Based in Berwyn, Pennsylvania, Envestnet offers software solutions for wealth managers and provides data for financial institutions and investment research firms.

The company serves 16 of the 20 largest U.S. banks and 48 of the 50 biggest wealth management and brokerage firms. Earlier this week, it was reported that the firms were nearing a deal that would value Envestnet close to its stock price.

Bain Capital is offering USD 63.15 per share in cash, just above Envestnet's stock price of USD 63.07 before the news broke. Last year, Envestnet added three new directors to resolve a board challenge from activist investor Impactive Capital, which had been urging the company to enhance performance through cost-cutting measures.

Envestnet is currently undergoing a leadership transition. In January, CEO Bill Crager announced he would step down from his position and transition to a senior adviser role in April. The company also considered a sale in 2022 after receiving interest from potential buyers and confirmed in April that it was once again on the market.

Envestnet reported better-than-expected profits in the first quarter and mentioned last month that it is collaborating with major firms like BlackRock, Fidelity Investments, Franklin Templeton, and State Street Global Advisors to develop custom investment strategies.

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