Envestnet announced Wednesday stockholder approval of its pending acquisition by Bain Capital.
The deal was first announced in July and is expected to close sometime in the fourth quarter of this year.
Stockholders overwhelmingly agreed to the merger at a special meeting. A preliminary tally of votes indicated that more than 99% of stockholders agreed to the acquisition by “affiliates of vehicles managed or advised by Bain Capital,” according to a statement.
The deal would take Envestnet private and delist it from the New York Stock Exchange.
At the time the sale was announced, the behemoth technology provider to advisory firms was valued at $4.5 billion, or $63.15 per share, which includes stakes by previous investors and strategic partners in the firm—Reverence Capital, BlackRock, Fidelity Investments, Franklin Templeton and State Street Global—which will ultimately hold minority shares in the business.
Envestnet currently works with more than 500 of the nation’s largest RIA firms, has over 109,000 advisors, and more than $6 trillion in total assets on its platform.
The company has been subject to takeover speculation since CEO Judson Bergman and his wife, Mary Miller, died in a San Francisco car accident in 2019. Rumors of Bain’s interest first surfaced in April.
Bergman and Envestnet president Bill Crager led the firm through a 2010 IPO, raising $30 million (Crager became CEO in 2020).
The firm was founded in 1999 and made its first acquisition of managed accounts provider Portfolio Management Consultants (PMC) in 2001.
