Actua Corporation (ACTA) has agreed to acquire FolioDynamix, a cloud-based investment and wealth management platform in the US, for $199 million in cash.
Under the terms of the deal, Actua will purchase approximately 97% primary equity interest in FolioDynamix, subject to transaction expenses and true-up adjustments for working capital, cash, debt and other items.
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The transaction, which is subject to customary closing conditions, is expected to be close in the fourth quarter of 2014.
The acquisition will boost Actua’s presence in the financial services sector.
ACTA said that FolioDynamix brings a current net revenue run rate of $30 million-plus, with positive earnings and cash flow and the company grew by more than 40% in 2013, and ACTA expects the growth rate to continue in 2014.
Doug Alexander, president of Actua, said: "FolioDynamix exemplifies the Actua vision of leveraging the power of the cloud to transform vertical markets and processes."
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By GlobalDataJoseph Mrak, CEO of FolioDynamix, said: "The continued flow of assets into managed accounts and model portfolios, the need for wealth management firms to innovate and modernize both programs and technology, combined with the trend toward adopting new platform solutions, provide a significant opportunity for FolioDynamix to grow its position as an industry leader.
"Together, we will continue to serve our blue chip client base, delivering unique and innovative solutions to drive further growth and market penetration," he added.
FolioDynamix offers cloud-based wealth management technology platform and advisory solutions for wealth service providers and investment advisors managing the full wealth management lifecycle across all account types.
