Yodlee Acquired for $660 Million.
Byline: Tina Orem
Fintech company Envestnet, Inc., which provides wealth management technology and services to financial advisors, has announced it will acquire Yodlee for approximately $660 million, marking a significant move in the burgeoning personal financial management market.
The transaction will be Envestnet's eighth acquisition in the last six years and part of a broader effort to scale up in the digital financial management market. The deal will combine the nearly 40,000 advisors in the Envestnet network with Yodlee's 20 million paid users, according to a release.
Based in Redwood City, Calif., Yodlee provides a cloud-based platform that helps financial institutions and other organizations create PFM tools that help people see and analyze all of their financial information. More than 850 companies, including 11 of the 20 largest U.S. banks, several credit unions and hundreds of Internet services companies, subscribe to the Yodlee platform, according to the company.
"Financial institutions, advisors and investment managers using the Envestnet platform will be able to provide a more interactive and informative digital advice experience for clients, powered by an expanding array of data mining and predictive analytical tools," Envestnet President Bill Crager said.
During a conference call following the announcement, Envestnet CEO Jud Bergman said he expects the deal to create powerful cross-selling opportunities, as well as provide more client permissioned, real-time access to investor data.
Founded in 1999, Yodlee generated $98.6 million in revenue for the 12 months ending on June 30, 2015. It has more than 975 employees. For the six months ending on June 30, Envestnet generated $199 million in revenue, according to SEC filings.
The transaction is expected to close in Q4 2015 or Q1 2016.
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|Publication:||Credit Union Times|
|Date:||Aug 11, 2015|
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