Yodlee agreed to sell itself to Envestnet, a provider of financial services for financial advisors, for approximately $660 million----that figure is nearly 2x as Yodlee was valued at its IPO less than a year ago. Envestnet hopes to build up its capabilities as it caters to financial advisors who are not affiliated with a big firm like Morgan Stanley or Bank of America, assisting them in driving creating greater customer lifetime value and relationships. The two parties had been in discussion for quite some time about a commercial partnership, but ultimately decided an acquisition made more sense.
Financial services software company Envestnet ENV -3.62% announced on Monday that it has acquired financial data mining and technology company Yodlee in a cash and stock transaction valued at $18.88 per share, or approximately $660 million. After incorporating about $70 million in cash and cash equivalents, the deal is valued at about $590 million. Founded in 1999, Yodlee YDLE -0.12% powers a technology that allows banking institutions and online financial managers to aggregate consumer financial data. It allows consumers to aggregate their credit card statements, bank accounts, and investment portfolio in one website. Its customers include 11 of the 20 largest U.S. banks ranked by assets, according to a recent Wall Street Journal report.