Envestnet,
Inc. (NYSE:ENV), a leading provider of unified wealth
management technology and services to investment advisors, announced
today that it has entered into a definitive agreement to acquire
Placemark Holdings, Inc., a firm that develops Unified Managed Account
(UMA) programs and other portfolio management outsourcing solutions for
banks, full-service broker-dealers and RIA firms.
Placemark’s patented, industry-leading portfolio overlay and tax
optimization service bolsters Envestnet | PMC’s product and service
offerings for investment advisors, who are increasingly turning to UMAs
to meet diverse investor needs. The UMA structure builds on the success
of previous-generation separately managed accounts, combining multiple
investment products into one account and delivering automated
rebalancing and customization services that allow for more tailored
investment solutions.
“Placemark delivers an efficient model of investing through its focus on
Unified Account Management and value-added overlay services, both of
which are critical for fee-based financial advisors to meet the unique
needs of their clients,” said Jud Bergman, Chairman and Chief Executive
Officer, Envestnet. “This acquisition significantly expands Envestnet’s
presence in the full-service broker-dealer channel, giving us added
resources to serve a broad spectrum of wealth management needs, while
delivering increased value to our shareholders.”
Placemark had approximately $14 billion in UMA assets under management
as of March 31, 2014, which would boost Envestnet to #5 on the list of
top Unified Managed Account providers in the industry with $24.7 billion
in assets, according to Cerulli rankings. Placemark CEO Lee Chertavian
will join Envestnet as Group President of Envestnet | Placemark.
“Placemark has created significant momentum in delivering customizable
UMA and overlay solutions to our customers, which is critical for
simplifying the delivery of sophisticated and diverse strategies to
investors,” said Lee Chertavian, Chairman and CEO of Placemark
Investments. “Having access to Envestnet’s broad wealth management
platform solutions should accelerate many of our strategic initiatives,
addressing our customers’ existing and emerging wealth management needs.”
Envestnet will initially operate Placemark’s web-based UMA platform
technology in tandem with its platform, benefiting customers of both
firms with overlay services and delivering Envestnet’s sophisticated
model management and rebalancing tools and reporting solutions to
Placemark’s clients. A full integration and consolidation is expected in
2016.
“We are excited to welcome the Placemark team to Envestnet and to
deliver all aspects of our integrated platform and services to their
clients, helping them achieve their business goals,” said Bill Crager,
President, Envestnet. “Placemark’s UMA focus and overlay solutions
further our efforts to empower advisors with the tools and resources
they need to deliver personalized service and better outcomes for their
clients.”
Envestnet has agreed to acquire Placemark for $66 million in cash upon
closing. The transaction is subject to customary closing conditions,
including customer consents, and is expected to close during the second
half of 2014. Raymond James & Associates served as financial advisor to
Placemark Investments, Inc. Envestnet did not retain a financial
advisor. Mayer Brown LLP acted as legal counsel to Envestnet and Goodwin
Procter LLP acted as counsel to Placemark Investments, Inc.
About Envestnet
Envestnet, Inc. (NYSE: ENV) is a leading provider of unified wealth
management technology and services to investment advisors. Our
open-architecture platforms unify and fortify the wealth management
process, delivering unparalleled flexibility, accuracy, performance and
value. Envestnet solutions enable the transformation of wealth
management into a transparent, independent, objective and fully-aligned
standard of care, and empower advisors to deliver better results.
Envestnet's Advisor Suite® software empowers financial
advisors to better manage client outcomes and strengthen their practice.
Envestnet provides institutional-quality research and advanced portfolio
solutions through our Portfolio Management Consultants group, Envestnet
| PMC®. Envestnet | Tamarac provides leading rebalancing,
reporting and practice management software.
For more information on Envestnet, please visit www.envestnet.com.
Cautionary Statement Regarding Forward-Looking Statements
The forward-looking statements made in this press release concerning,
among other things, Envestnet, Inc.’s (the “Company”) expected financial
performance and outlook, its strategic operational plans and growth
strategy are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. These statements involve risks
and uncertainties and the Company’s actual results could differ
materially from the results expressed or implied by such forward-looking
statements. Furthermore, reported results should not be considered as an
indication of future performance. The potential risks, uncertainties and
other factors that could cause actual results to differ from those
expressed by the forward-looking statements in this press release. For
example, the Company’s forward-looking statements related to Placemark
and the anticipated acquisition could prove incorrect if the transaction
were to not close, if Placemark were to perform differently than
currently expected by the Company or if anticipated benefits of the
transaction are not realized. More generally, potential risks,
uncertainties and other factors relating to the Company’s business
include, but are not limited to, difficulty in sustaining rapid revenue
growth, which may place significant demands on the Company’s
administrative, operational and financial resources, fluctuations in the
Company’s revenue, the concentration of nearly all of the Company’s
revenues from the delivery of investment solutions and services to
clients in the financial advisory industry, the Company’s reliance on a
limited number of clients for a material portion of its revenue, the
renegotiation of fee percentages or termination of the Company’s
services by its clients, the impact of market and economic conditions on
the Company’s revenues, compliance failures, regulatory actions against
the Company, the failure to protect the Company’s intellectual property
rights, the Company’s inability to successfully execute the conversion
of its clients’ assets from their technology platform to the Company’s
technology platform in a timely and accurate manner, general economic,
political and regulatory conditions, as well as management’s response to
these factors. More information regarding these and other risks,
uncertainties and factors is contained in the Company’s filings with the
Securities and Exchange Commission (“SEC”) which are available on the
SEC’s website at www.sec.gov
or the Company’s Investor Relations website at http://ir.envestnet.com/.
You are cautioned not to unduly rely on these forward-looking
statements, which speak only as of the date of this press release. All
information in this press release is as of July 1, 2014 and, unless
required by law, the Company undertakes no obligation to publicly revise
any forward-looking statement to reflect circumstances or events after
the date of this press release or to report the occurrence of
unanticipated events.
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