Envestnet is to acquire all of the shares of Yodlee in a cash and stock transaction valued at USD18.88 per share, or approximately USD660 million on a fully-diluted equity value basis.
As Yodlee has approximately USD70 million in cash and cash equivalents, the transaction reflects an enterprise value of approximately USD590 million.
Yodlee powers digital financial solutions for over 20 million paid users and over 850 financial institutions and financial technology innovators. Founded in 1999, the company has built a network of over 14,000 data sources and been awarded 72 patents. Headquartered in Redwood City, California, with more than 975 employees worldwide, Yodlee generated revenues of USD98.6 million for the 12 months ended 30 June, 2015.
The combination of Envestnet’s end-to-end wealth management platform and Yodlee’s data aggregation solutions will deliver more value through the Envestnet platform than ever before. Combining Yodlee’s expertise with the Envestnet platform will empower advisors to cross the digital divide and provide broader visibility into their clients’ financial well-being, both of which are essential to better decisions and ultimately better outcomes.
“The acquisition of Yodlee is a watershed moment in the financial technology industry. We have long admired Yodlee’s innovative solutions and are excited to bring the companies together,” says Jud Bergman, Chairman and Chief Executive Officer of Envestnet. “The union of these two pioneers will enable investors and the advisors who serve them to access and make better sense out of their disparate and complicated financial data. We believe this represents a quantum leap in accuracy and knowledge that will deliver better outcomes to improve the financial health of investors.”
The transaction represents the continuation of Envestnet’s proven growth strategy. The combination of Envestnet and Yodlee provides for a deeper level of customer engagement and substantial opportunities for revenue synergies.
“Yodlee is the preeminent name for data in financial services today. The core of every financial transaction and every financial decision is data. The Yodlee platform brings together client permissioned financial data and analytics in unique ways to power personalised and dynamic financial apps and generate business insights,” says Bill Crager (pictured), President of Envestnet. “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.”
“This is an exciting combination for our shareholders, clients, and employees. Yodlee has taken the lead in building out a digital ecosystem with leading financial institutions and financial technology innovators for consumers and small-to medium-sized businesses and Envestnet has done the same for advisors,” says Anil Arora, President and Chief Executive Officer of Yodlee, who will become Vice Chairman of the combined company’s Board of Directors and Chief Executive of the Yodlee subsidiary when the deal closes. “The union of Yodlee and Envestnet will create a company unmatched in its ability to improve and simplify people’s financial lives around the world.”