Blackrock Takes Stake in Envestnet
CHICAGO–(BUSINESS WIRE)–Envestnet (NYSE: ENV) and BlackRock (NYSE: BLK), through its Digital Wealth business, are entering into a strategic relationship to enhance the investment technology solutions they provide to financial advisors and the clients they serve.
Envestnet, a leading provider of intelligent systems for wealth management, has one of the most comprehensive, open architecture platforms for financial advisors in the wealth management industry. BlackRock Digital Wealth provides advisors with sophisticated technologies to help them build better portfolios, with customization and at scale. The two companies will accelerate work to integrate BlackRock Digital Wealth’s technologies into Envestnet’s platform.
“Envestnet is uniquely positioned to create the premier financial wellness network. Integrating BlackRock Digital Wealth offerings into the Envestnet platform represents an industry milestone, advancing advisors’ ability to help investors meet their financial goals,” said Bill Crager, President of Envestnet.
As the wealth management industry continues to transform, both Envestnet and BlackRock are driving the evolution of technology solutions. The future of advice will be both more digital and more comprehensive. This relationship strengthens the framework for this future.
“As wealth managers shift to fee-based advisory relationships, they are asking for new technologies to help them scale their business and build better portfolios,” said Venu Krishnamurthy, Global Head of Digital Wealth for BlackRock. “Through this strategic relationship, we aim to bring BlackRock Digital Wealth’s solutions to Envestnet’s clients in a modern, highly integrated way.”
In conjunction with the strategic relationship, BlackRock, Inc. will acquire an equity stake in Envestnet of approximately 4.9% by purchasing from Envestnet approximately 2.36 million shares of Envestnet common stock for a purchase price of $52.13 per share and an aggregate purchase price of approximately $122.8 million. In addition, Envestnet will issue to BlackRock a warrant to purchase approximately 470,000 shares of Envestnet common stock at an exercise price of $65.16 per share, subject to customary anti-dilution adjustments. The Warrant is exercisable at the option of BlackRock for four years from the date of issue. The Company expects the closing of the investment to occur prior to the end of 2018, subject to customary closing conditions, including, among others, obtaining clearance under the Hart-Scott Rodino Antitrust Improvements Act.
PJT Partners LP is acting as financial adviser to Envestnet and Mayer Brown LLP is serving as legal counsel. Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal counsel to BlackRock.
Envestnet, Inc. (NYSE: ENV) is a leading provider of intelligent systems for wealth management and financial wellness. Envestnet’s unified technology enhances advisor productivity and strengthens the wealth management process. Envestnet empowers enterprises and advisors to more fully understand their clients and deliver better outcomes.
Envestnet enables financial advisors to better manage client outcomes and strengthen their practices. Institutional-quality research and advanced portfolio solutions are provided through Envestnet | PMC, our Portfolio Management Consultants group. Envestnet | Yodlee is a leading data aggregation and data analytics platform powering dynamic, cloud-based innovation for digital financial services. Envestnet | Tamarac provides leading rebalancing, reporting, and practice management software for advisors. Envestnet | Retirement Solutions provides retirement advisors with an integrated platform that combines leading practice management technology, research and due diligence, data aggregation, compliance tools, fiduciary solutions and intelligent managed account solutions.
More than 92,000 advisors and more than 3,500 companies including: 15 of the 20 largest U.S. banks, 43 of the 50 largest wealth management and brokerage firms, over 500 of the largest Registered Investment Advisers, and hundreds of Internet services companies, leverage Envestnet technology and services. Envestnet solutions enhance knowledge of the client, accelerate client on-boarding, improve client digital experiences, and help drive better outcomes for enterprises, advisors, and their clients.
For more information on Envestnet, please visit www.envestnet.com and follow @ENVintel.
BlackRock helps investors build better financial futures. As a fiduciary to its clients, BlackRock provides the investment and technology solutions they need when planning for their most important goals. As of September 30, 2018, the firm managed approximately $6.44 trillion in assets on behalf of investors worldwide. For additional information on BlackRock, please visit www.blackrock.com.
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