Wealth management software provider Envestnet has agreed a deal to sell its open finance and data analytics subsidiary Yodlee to US-based private equity firm STG for an undisclosed sum.
The acquisition is expected to be finalised in Q3 2025 subject to customary closing conditions.
Founded by Jud Bergman, Bill Crager, Brandon Thomas, and Jim Lumberg in 1999 and headquartered in Berwyn, Pennsylvania, Envestnet offers a wealth management platform built to provide financial advisors and businesses with data, insights, and financial planning tools to enable them to better support their clients. It currently claims that its technology and services are used “by more than one-third of all financial advisors”, with around $6.5 trillion in total platform assets.
Envestnet acquired Yodlee back in 2015 in a deal worth around $660 million in cash and stock with the aim to integrate Yodlee’s data aggregation tech into its wealth management solutions.
Yodlee will now become part of STG’s global technology portfolio, which also includes the likes of SurveyMonkey, Trellix, and RSA.
Envestnet says the sale “positions Yodlee for accelerated growth and continued client support under STG’s stewardship”, adding that the business will be backed “by enhanced investment and a leaner operating model”.
Envestnet was itself acquired by US-based private investment giant Bain Capital in a deal worth $4.5 billion last year.
Earlier this year, the company named former Kronos president Chris Todd as its new CEO.
Todd says the deal to sell Yodlee “is the first step in our value creation plan as a private company” and will allow Envestnet to “focus more deeply” on its core wealth management platform.
“Through our continued partnership with Yodlee, advisors will retain access to Yodlee data aggregation technology that helps power their business,” Todd adds.
Source: https://www.fintechfutures.com/
