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Exclusive: Bain Capital nears deal to buy Envestnet, sources say
By Milana Vinn
(Reuters) – Private equity firm Bain Capital is nearing a deal to acquire Envestnet, a U.S. financial software provider with a market value of about $3.5 billion, people familiar with the matter said on Monday.
If the talks are successful, a deal with Bain could be announced as early as this week and would value Envestnet at around its current share price, the sources said. Envestnet shares are trading around $63.
The sources asked not to be identified because the matter is confidential. Envestnet and Bain did not immediately respond to requests for comment.
Envestnet provides technology tools for financial advisors and wealth managers. Its clients include more than 108,000 advisors, 16 of the 20 largest U.S. banks and several major wealth management and brokerage firms, according to its website.
Last year, Envestnet hired three new directors to end a boardroom dispute with activist investor Impactive Capital, which had been pressuring the company to improve its performance by cutting costs.
Envestnet is currently in the midst of a leadership transition. In January, CEO Bill Crager said he would step down from that role and remain with the company as a senior advisor starting in April.
The company had previously explored a sale in 2022 after being approached by potential buyers. Reuters reported in April that Envestnet was again up for sale.
(Reporting by Milana Vinn in New YorkEditing by Greg Roumeliotis and Lisa Shumaker)