Dive Brief:
- Wealth technology platform Envestnet is offloading data aggregator Yodlee to private-equity firm STG, the company said last week.
- Financial terms of the deal were not disclosed, but Envestnet bought Yodlee for roughly $610 million in 2015. The transaction is expected to close in the third quarter.
- Rumors that Envestnet had been looking to sell Yodlee have persisted since the end of 2023. Envestnet went private last year when Bain Capital and Reverence Capital bought the firm for roughly $4.5 billion.
Dive Insight:
Envestnet CEO Chris Todd called the transaction the “first step in our value creation plan as a private company, [which] will allow Envestnet to focus more deeply on its core connected wealth management platform, advanced insights and comprehensive solutions."
Advisers will retain access to Yodlee’s data aggregation technology through a continued partnership with Envestnet, Todd said.
“Yodlee sits at the intersection of trusted data access and intelligent analytics,” Marc Bala, managing director at STG, said in a statement. “It has built deep integrations across the financial ecosystem and earned the confidence of the world's leading banks, asset managers and wealth platforms.”
Envestnet, for its part, has seen a fair bit of fluctuation among its C-suite in recent years. Todd was named CEO in January, replacing interim chief Jim Fox. Fox, in turn, took the reins from co-founder Bill Crager, who stepped down in March 2023. Crager led the company after fellow co-founder Jud Bergman died in a car crash in 2019.
Elsewhere in the C-suite, Envestnet tapped BlackRock alum Joshua Warren as its CFO after predecessor Pete D’Arrigo left the firm in September 2023.
Yodlee, meanwhile, competes with the likes of Plaid. The purchase by STG is meant to help Yodlee “operate with greater agility to pursue innovation and capitalize on emerging market opportunities,” according to a press release last Wednesday.
“Backed by enhanced investment and a leaner operating model, Yodlee expects to accelerate speed-to-market and deliver next-generation solutions across the open finance ecosystem,” the company said.
STG counted more than $12 billion in assets under management as of March, according to the release.
