Software vendor Envestnet explores sale after receiving takeover interest, sources say
16/04/2024 21:13
(Adds more background on Envestnet in paragraphs 8-9, updates
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 MS.N 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 jumped more than 10% on the news before
paring those gains to close at $61.80.
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. In January, CEO Bill Crager said he would
step down from this role and continue with the company as a
senior advisor starting April.
Envestnet provides technology tools to financial advisers
and wealth managers. Its clients include more than 108,000
advisers, 16 of the top 20 U.S. banks, and several top wealth
management and brokerage firms, according to its website.
The company previously explored a sale in 2022 after being
approached by potential buyers, the sources said.
(Reporting by Milana Vinn; Editing by Chizu Nomiyama, Anirban
Sen and Lisa Shumaker)
((Anirban.Sen@thomsonreuters.com; Twitter: @asenjourno; Reuters
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