Envestnet, a provider of unified wealth management technology and services to financial advisors, has agreed to acquire Yodlee, a cloud-based data analytics company, for nearly $590m.
Under the terms of the agreement, Envestnet will pay $18.88 a share in cash and stock. That is a nearly 50% premium to Yodlee’s close of $12.60 on 10 August 2015.
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Yodlee, founded in 1999, initially focused on building relationships with banks. Later it developed products to help financial-app makers connect to bank accounts of users.
Currently, Yodlee provides digital financial solutions to over 20 million paid users and over 850 financial institutions and financial technology innovators.
Headquartered in Redwood City, California, the company has built a network of over 14,000 data sources and been awarded 72 patents.
It employs more than 975 employees worldwide and generated revenues of $98.6m for the 12 months ended 30 June 2015.
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By GlobalDataUnder the deal, Yodlee president and CEO Anil Arora will take over as vice chairman of the combined company’s Board of Directors and CEO of the Yodlee subsidiary on the closure of the deal.
Commenting on the deal, Envestnet chairman and CEO Jud Bergman: "The acquisition of Yodlee is a watershed moment in the financial technology industry. We have long admired Yodlee’s innovative solutions and are excited to bring the companies together.
"The union of these two pioneers will enable investors and the advisors who serve them to access and make better sense out of their disparate and complicated financial data. We believe this represents a quantum leap in accuracy and knowledge that will deliver better outcomes to improve the financial health of investors."
The acquisition is expected to close in the fourth quarter of 2015 or first quarter of 2016.
