Envestnet, a provider of unified wealth management technology to investment advisers, has agreed to buy Placemark, a firm that develops Unified Managed Account (UMA) programs and other portfolio management outsourcing solutions for banks and RIA firms.
The acquisition will expand Envestnet product and service offerings for investment advisors, who are looking for UMAs to meet diverse investor needs using Placemark’s portfolio overlay and tax optimization service.
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Subject to customary closing conditions, the deal is expected to complete during the second half of 2014.
As part of the deal, Envestnet will initially operate Placemark’s web-based UMA platform technology together with its platform, benefiting customers with quality services as well as by delivering Envestnet’s model management and rebalancing tools and reporting solutions to Placemark’s clients.
However, a full integration and consolidation is scheduled to take place in 2016.
Jud Bergman, chairman and CEO of Envestnet, said: "This acquisition significantly expands Envestnet’s presence in the full-service broker-dealer channel, giving us added resources to serve a broad spectrum of wealth management needs, while delivering increased value to our shareholders."
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By GlobalDataLee Chertavian, chairman and CEO of Placemark Investments, said: "Having access to Envestnet’s broad wealth management platform solutions should accelerate many of our strategic initiatives, addressing our customers’ existing and emerging wealth management needs."
