Software vendor Envestnet explores sale after receiving takeover interest, sources say
16/04/2024 20:06
(Adds more background, share movement)
By Milana Vinn
NEW YORK, April 16 (Reuters) - Envestnet ENV.N , a U.S.
software vendor with a market value of about $3.5 billion, is
exploring options that could include a potential sale after
receiving takeover interest, people familiar with the matter
said on Tuesday.
Berwyn, Pennsylvania-based Envestnet is working with
investment bank Morgan Stanley to engage with potential
acquirers, the sources said, requesting anonymity as the
discussions are confidential.
Private equity firms, including Bain Capital, are among the
parties that have expressed interest in acquiring Envestnet, the
sources added, cautioning that no deal is certain.
Shares of Envestnet, which were trading about 10% higher
earlier on Tuesday, jumped another 12% on the news to hit a
session high of $68.83.
Last year, Envestnet added three new directors to end a
board challenge from activist investor Impactive Capital that
had been pushing the company to improve its performance by
cutting costs.
Envestnet and Morgan Stanley declined to comment.
Envestnet, which is a provider of software to financial
institutions and banks, is currently in the middle of a
leadership transition. Envestnet, which provides technology
tools to financial advisors and wealth managers, currently
counts more than 108,000 advisors, 16 of the top 20 U.S. banks,
and several top wealth management and brokerage firms among its
clients, according to its website.
In January, CEO Bill Crager said he would step down from
this role and continue with the company as a senior advisor
starting April.
(Reporting by Milana Vinn; Editing by Chizu Nomiyama and
Anirban Sen)
((Anirban.Sen@thomsonreuters.com; Twitter: @asenjourno; Reuters
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