Envestnet Inc., the purveyor of wealth administration know-how to quite a few advisory companies that has been on an acquisition and integration tear of late, introduced Thursday after market shut that it could be shopping for PIETech, the mum or dad firm of standard goals-based monetary planning software program MoneyGuidePro. The transaction, anticipated to shut in mid-year 2019, shall be price $295 million in money and roughly three.185 million shares of Envestnet, or roughly $500 million in whole worth.
Tony Leal, PIETech’s present co-CEO and CTO, will assume the function as CEO of the brand new entity and proceed as CTO. He’ll report back to Envestnet CEO Jud Bergman. The brand new entity will function as Envestnet | MoneyGuide.
This transfer will make Envestnet a number one supplier of each goals-based and cashflow-based monetary planning (the agency acquired Finance Logix in 2015; phrases weren’t totally disclosed in that deal). Whereas having the experience and sources at Envestnet from each the Logix and MoneyGuide groups out there ought to preserve each the brokerage-focused and fiduciary-focused buyer constituencies of the bigger companies appeased, it also needs to enable for the buildout of recent merchandise within the monetary wellness area, one thing alluded to in at the moment’s ready assertion.
The deal comes on the heels of different latest bulletins within the usually quieter, extra staid world of economic planning, together with the February heralding of a scaled-down providing from eMoney and the late January launch of Apprise Labs (which introduced three former rivals collectively).
This can be a breaking information story and shall be up to date.