Envestnet, a financial software provider that caters to wealth management firms, has agreed to go private in a deal with Bain Capital in a transaction valued at $4.5 billion.
The deal, which is expected to close in Q4 this year, will provide shareholders $63.15 per share after the company traded between $33 and $73 per share over a 52-week period. Strategic partners including BlackRock, Fidelity Investments, Franklin Templeton, and State Street Global Advisors will acquire minority stakes in the company. Reverence Capital Partners also took part in the deal.
The fintech company manages more than $6 trillion in assets and seeks to enhance its wealth management technology platform as a private company.
Take-private deals in Q2 made a recovery as deal value increased to $61.2 billion from the $15.6 billion in the previous quarter, according to PitchBook’s Q2 2024 US PE breakdown.
Bain Capital has been an active player in the strategy—the deal marks the second multibillion-dollar take-private transaction the firm has entered in about a month.
In June, the firm agreed to take educational technology provider PowerSchool private in a $5.6 billion deal. The transaction should allow the target to enhance its generative AI platform, as Onex Partners and Vista Equity stay on as minority investors.
Envestnet seeks to provide a network of financial resources so wealth managers can better assist clients in managing their finances. Prior to the deal announcement, Bloomberg reported in May that the company had attracted takeover interest from buyers including Advent International and GTCR.
Firms including RBC Capital Markets, BMO Capital Markets, Barclays, and Goldman Sachs & Co provided debt financing for the transaction alongside funds managed by Ares Management, Blue Owl Capital, and Benefit Street Partners.
Envestnet retained Morgan Stanley & Co as financial adviser and Paul, Weiss, Rifkind, Wharton & Garrison as legal adviser on the transaction, while Bain Capital recruited JP Morgan Securities as financial adviser and Ropes & Gray as legal adviser.
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