Bain Capital, a US private investment firm with around $185bn of AUM, is to acquire wealth management software company Envestnet in a deal valued at $4.5bn, according to a report by the Wall Street Journal.
Bain Capital has agreed to pay $63.15 per share for Envestnet, which represents a 2.4% premium over Wednesday’s closing price of $61.70, and is nearly 12% above Envestnet’s closing price of $56.54 on 15 April, prior to reports of a potential sale. The transaction is expected to close in the fourth quarter of 2024.
In addition to Bain, private investment firm Reverence Capital Partners will participate in the transaction, while other major financial institutions including BlackRock, Fidelity Investments, Franklin Templeton and State Street Global Advisors have also committed to investing and will all hold minority stakes in Envestnet.
Envestnet’s agreement with Bain includes “no-shop” restrictions, limiting its ability to seek a better offer, although the company can engage in discussions if approached by another buyer with a superior proposal, with Bain retaining matching rights.
The agreement is Bain Capital’s second recent multi-billion dollar transaction, with the company having also agreed to acquire PowerSchool Holdings in a deal valued at $5.6bn including debt.
