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Envestnet Cements Commitment To Wealth Management Industry With Acquisition

Eliane Chavagnon Americas Correspondent 2 July 2013

Envestnet Cements Commitment To Wealth Management Industry With Acquisition

New York-listed Envestnet, a provider of wealth management and technology services to advisors, has completed its previously-announced acquisition of Wealth Management Solutions, a division of Prudential Investment.

The purchase cost Envestnet $10 million in cash, plus contingent consideration of up to a total of $23 million in cash to be paid over three years. The firm now has $152 billion in third-party vendor assets under management/advisement, and total assets of $430 billion, as of March 31, 2013.

“Our growth strategy is focused on broadening and deepening our existing relationships as well as establishing and expanding our leadership in key market segments,” said Jud Bergman, chairman and chief executive at Envestnet. Bergman previously described the move as a “consolidating acquisition” which reinforces the firm’s presence in the bank and wealth management market.

As part of the move, Kevin Osborn, executive vice president and director of Prudential WMS, is joining Envestnet as executive vice president to lead the new bank and bank trust sales channel.

Revenues from assets under management/administration Envestment 29 per cent year-over-year to $36.3 million for the first quarter of 2013, while total revenues (including licensing and professional services fees) soared 43 per cent to $46.6 million. Net income fell however, from $0.7 million in the first quarter of 2012 to $0.5 million (or $0.02 per diluted share) at the end of March 2013.  

 

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