Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards

Financial Planning > Behavioral Finance

Financial Engines, Edelman Complete Merger

Your article was successfully shared with the contacts you provided.

Financial Engines and Edelman Financial Services have officially completed their merger.

Edelman’s acquisition of robo-advisor Financial Engines was announced on April 30, and became effective Thursday.

Private equity firm Hellman & Friedman, which owns a majority interest in Edelman, handled the deal. As part of the transaction, Financial Engines has been combined with Edelman Financial Services, and its common stock ceased trading on the Nasdaq Stock Market as of July 19.

Under the terms of the transaction, Financial Engines stockholders are entitled to receive $45 per share in cash.

Sandler O’Neill & Partners, L.P. acted as financial advisor to Financial Engines, and Wachtell, Lipton, Rosen & Katz provided legal counsel to Financial Engines.

Michael Kitces, author of the Nerd’s Eye View blog, said in a Twitter post when the deal was announced that the move was “a huge win” for both firms.

“Simply put, for Financial Engines, this is about deepening their bench of HUMAN advisors, affirming they’re seeing positive results with humans from [the Mutual Fund] Store. For Edelman, it’s a massive ‘distribution’ opportunity to bring their [financial planning] advice to more consumers [without] relying on Ric,” Kitces explained on Twitter.

Financial Engines President and CEO Larry Raffone is set to become president, CEO and board member of the combined company, while Ric Edelman — Edelman’s chairman and co-founder — will serve as a board member and chairman of Financial and Investor Education for the new entity.

Financial Engines has some $169 billion in assets under management and works with some 750 employers to deliver digital-based retirement planning and related services for over $1.2 trillion in assets under contract; it bought the Mutual Fund Store, which included about 350 employees and advisors, for about $560 million in late 2015.

Edelman has some $22 billion in assets and does advisor-based financial planning.

— Check out Financial Engines-Edelman Deal: Where Are the Synergies? on ThinkAdvisor.


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.