Private equity firm Bain Capital, supported by a group of investors, entered into a definitive agreement on July 11, 2024, to take Envestnet, Inc. (ENV) private for $4.5 billion.
Under the terms of the agreement, Envestnet shareholders will receive $63.15 in cash for each share of common stock they own, representing a premium of 2.35% from the stock’s last close.
Berwyn, Pennsylvania-based Envestnet provides software for wealth managers and financial data to institutions and research firms, serving 16 of the 20 largest U.S. banks and 48 of the 50 biggest wealth management and brokerage firms.
Bain Capital is a leading global multi-asset alternative investment firm, founded in 1984, with over 1,750 employees, $185 billion in assets under management, and a presence on four continents, investing across various asset classes including private equity, credit, public equity, venture capital, and real estate.
Bain Capital will be joined by investors like BlackRock (BLK), and Fidelity Investments, who will hold minority positions in the private company once the deal is completed. Reverence Capital will also participate in the deal.
Envestnet’s current Price/Sales (TTM) ratio is 2.65, below the sector median of 3.02.
The deal is expected to close in the fourth quarter of 2024.
In April, Reuters reported that Envestnet was exploring options, including a potential sale. At that time, the stock was trading at $53. The current purchase price of $63.15 per share represents a 19.15% premium over the stock’s pre-announcement close.
For more in-depth information on this M&A transaction, please visit the Deal Metrics page here:
Deal Metrics for the acquisition of Envestnet, Inc. (ENV) by Bain Capital (N/A)
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Editor’s Note: Baranjot Kaur contributed to this article