Envestnet, a US-based provider of unified wealth management technology to investment advisers, has purchased Upside, a technology provider of digital advice solutions to financial advisors, to provide robo-advisor solution for its clients.
Terms of the transaction have not been disclosed.
The deal will combine Upside’s financial planning and investment management platform with Envestnet’s investment solutions, portfolio analytics, account servicing infrastructure and reporting capabilities.
Additionally, the acquisition will allow Envestnet to significantly expand the scale of Upside’s digital advisor solution by using the time-tested operations and servicing functionality of its platform technology.
As part of the deal, Upside can access Envestnet’s technology services and its managed portfolios.
The acquisition will see Tom Kimberly, co-founder and CEO of Upside and Juney Ham, co-founder and president of Upside, joining Envestnet as senior vice presidents.
Envestnet | Tamarac group president Stuart DePina said: "Advisors leverage our technology to automate operations and effectively deploy many elements of a robo or digital advisor offering. Adding Upside to our platform will allow advisors to compete more aggressively to engage current clients online and reach a new class of investors."
Envestnet president Bill Crager said: "By providing access to managed portfolios from some of the world’s leading investment strategists through Upside’s platform design, we can extend the automated advice delivery model in a way that further increases the relevance of the financial advisor."