Envestnet, Inc, a provider of integrated wealth management solutions for financial advisors, is to acquire Prima Capital Holding, a provider of investment manager due diligence, research applications, asset allocation modelling and multi-manager portfolios to the wealth management and retirement industries.
Prima’s clientele includes regional broker-dealers, trust companies, independent RIAs, family offices and seven of the top 20 banks in the US by total assets.
The acquisition of Prima extends Envestnet’s ability to deliver an expanded set of premium research-based solutions to financial advisors. Envestnet plans to enhance its wealth management solutions with Prima’s objective advice, analytics and data on managed account strategies (UMA and SMA), mutual funds, ETFs and alternative investments, delivered through powerful web-based technology.
“Prima is a market leader in delivering institutional-quality investment manager research and due diligence to top-tier wealth management organizations,” says Jud Bergman (pictured), Chairman, Founder and Chief Executive Officer of Envestnet. “We are eager to extend Prima’s core offering with Envestnet’s technology, product depth and portfolio management capabilities as well as augment our own due diligence and research offering. The potent combination of Envestnet and Prima advances our clients’ ability to transform the wealth management industry.”
By joining Envestnet, Prima will be positioned to leverage Envestnet’s innovative wealth management technology platform and vast array of investment product solutions to expand its offering. The Envestnet due diligence process will also be enhanced by Prima’s objective, rigorous and thorough research process and tools.
“Prima’s relationship with Envestnet enables us to continue delivering the top-quality products, services, and solutions to meet our clients’ evolving needs, with added resources for further innovation,” said Prima’s President and Chief Executive Officer, J Gibson Watson, III, who will become Group President of Envestnet • Prima, a new business group within the Envestnet suite of solutions. “With complementary core competencies, Prima and Envestnet provide an enterprise-wide suite of wealth management solutions delivered through robust technology tools.”
Watson founded Prima in 1999. Broadridge Financial Solutions, Inc. acquired majority ownership of Prima as part of Broadridge’s acquisition of Matrix Financial Solutions, Inc. in January 2011.
“Prima is a profitable and growing but non-core business for Broadridge. We believe Prima’s clients and employees will be well-served under Envestnet’s ownership, and we wish them all well,” says Broadridge Chief Development Officer Tim Gokey.
Envestnet is acquiring Prima for USD13.75 million in cash, subject to certain post-closing adjustments. The acquisition is subject to customary closing conditions, including third-party consents, and is expected to be completed by 15 April, 2012.
Sterne, Agee & Leach, Inc acted as the exclusive financial advisor to Broadridge and the shareholders of Prima in connection with the sale of Prima to Envestnet. Envestnet did not retain a financial advisor. Mayer Brown LLP acted as counsel to Envestnet. Squire Sanders (US) LLP acted as legal counsel to Broadridge and Fairfield & Woods PC acted as counsel to the management shareholders of Prima.