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Envestnet Acquires FinTech Company Finance Logix

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Envestnet announced on Wednesday afternoon that it has acquired Finance Logix, a technology company that provides financial planning and wealth management software solutions to banks, broker-dealers and RIA firms.

“Advisors we serve have been requesting a tightly integrated platform where financial planning flows seamlessly into investment planning and ongoing management on a single platform,” said Jud Bergman, chairman and CEO of Envestnet, in a statement. “This acquisition allows us to deliver that capability and increase the breadth of our platform and the functionality gap between our platform and competing platforms.”

This announcement comes at the start of the Envestnet Advisor Summit, where 1,600 total attendees have gathered in Chicago. During his address at the Advisor Summit Wednesday afternoon, Bergman promised that the acquisitions that Envestnet has made and the programs it has built and will announce at the Advisor Summit will help advisors “cross that digital divide.”

Finance Logix, which was founded in 1998, provides financial planning software to more than 20,000 advisors today. In 2013, the company was chosen as the “Most Innovative Product of the Year” at TechLeaders, the annual broker-dealer technology conference.

With this acquisition, Envestnet plans to integrate Finance Logix’s financial planning application with Envestnet’s broad suite of investment solutions, portfolio analytics, account servicing and reporting capabilities to deliver an end-to-end wealth management platform.

In addition to offering this integrated wealth management platform, Envestnet will continue to support the stand-alone financial planning software model for existing and new clients.

Stuart DePina, group president of Envestnet | Tamarac, said combining Finance Logix services with Envestnet will be influential for Envestnet’s Digital Advisor platform.

“Finance Logix has been a pioneer in developing a goals-based approach to financial planning and has developed an impressive suite of financial planning capabilities in a way that is easy to customize, deploy and integrate,” said DePina in a statement. “Integrating their financial planning modules with Envestnet’s broad platform will deliver a quantum leap in unifying the wealth planning and management process; this new functionality will become a core differentiating component of Envestnet’s Digital Advisor platform in delivering great efficiencies to the advisors we serve.”

Finance Logix’s president and CEO Oleg Tishkevich will join Envestnet as managing director and chief technology officer of financial planning.

Envestnet has acquired Finance Logix for up-front consideration consisting of cash, 123,410 shares of Envestnet common stock and options to acquire 123,410 shares of Envestnet common stock at $52.67 per share, expiring on May 6, 2025. Envestnet has also agreed to pay an earn-out (in a mix of cash, stock and options) over a three-year period, subject to Finance Logix meeting certain financial targets and other customary conditions.

 See all the onsite coverage of the Envestnet Advisor Summit.


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