Envestnet, Inc. Completes Merger with BCPE Pequod Buyer, Inc. Creating New Business Dynamics

Envestnet, a prominent provider of wealth solutions and integrated technology, has recently finalized its merger with BCPE Pequod Buyer, Inc. This strategic move, completed on November 25, 2024, involved BCPE Pequod Merger Sub, merging with Envestnet. The surviving entity, in this case, is now Envestnet and is a wholly owned subsidiary of BCPE Pequod Buyer, Inc., an affiliate of Bain Capital Private Equity, LP.

The entire merger and its associated transactions were carried out as per the terms outlined in the Agreement and Plan of Merger, dated July 11, 2024. The detailed agreement and its broader implications are documented in the Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission (SEC) on the mentioned date. This merger impacts Envestnet’s securities and financial obligations significantly, necessitating various consequential actions.

Concurrently with the merger’s closure, Envestnet entered into Convertible Notes Indentures relating to convertible notes due in 2025 and 2027. The merger altered the conversion terms concerning these notes, converting the right to convert principal amounts into Reference Property, specifically cash. Following the Fundamental Change, Envestnet expects to provide an offer to repurchase all convertible notes from holders.

In conjunction with the merger, a Credit Agreement was established between Parent and the Company, offering a senior secured term loan facility and a revolving credit facility. This agreement includes customary provisions for such facilities and secures obligations with assets from both the borrower and guarantors.

As a result of the merger, Envestnet’s common stock ceased trading on the New York Stock Exchange (NYSE) as of November 25, 2024, prompting the company to initiate delisting procedures and deregistration with the NYSE. Envestnet will proceed as a privately held company, aiming to enhance its operations and offerings within the industry.

Through this acquisition, Envestnet positions itself for accelerated growth and innovation under the umbrella of Bain Capital. The strategic acquisition, valued at approximately $4.5 billion, marks a significant shift in Envestnet’s corporate structure and strategic direction. The company’s primary mission remains focused on empowering financial firms and advisors with tailored wealth management solutions to serve clients holistically.

Following the completion of the merger, several key operational and governance changes have been implemented. Notable among these changes is the transition in directorship and the appointment of new officers to steer Envestnet’s operations towards future growth opportunities.

In tandem with the merger, Envestnet published a press release announcing the closure of the transaction. The acquisition cements Envestnet’s status as a leading player in the wealth management industry, poised to drive innovation and value for its clients.

This transformative merger underlines Envestnet’s strategic focus on enhancing its wealth technology platform and delivering superior services to its clients in the evolving financial landscape.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Envestnet’s 8K filing here.

About Envestnet

Envestnet, Inc, through its subsidiaries, provides wealth management software and services in the United States and internationally. It operates through two segments: Envestnet Wealth Solutions and Envestnet Data & Analytics. The Envestnet Wealth Solutions segment offers Envestnet | Enterprise, an end-to-end open architecture wealth management platform, as well as offers data aggregation and reporting, data analytics, and digital advice capabilities; Envestnet | Wealth Analytics that transforms data into actionable intelligence; Envestnet | Tamarac which provides trading, rebalancing, portfolio accounting, performance reporting, and client relationship management software; and Envestnet | MoneyGuide that provides goals-based financial planning solutions to the financial services industry.