What You Need to Know
- The acquisition provides InvestCloud with a competitive financial planning offering, according to Joel Bruckenstein, T3 president.
- Financial terms of the transaction were not disclosed.
- The acquisition comes as market volatility has accelerated the industry's focus on financial planning.
InvestCloud has acquired Advicent and its NaviPlan financial planning platform from Vista Equity Partners in a deal that closed this week, according to Mark Trousdale, InvestCloud chief marketing officer.
Advicent provides financial planning technology for more than 140,000 financial professionals across nearly 3,000 firms globally. Via its NaviPlan platform, Advicent creates scalable financial planning software through application programming interfaces (APIs) as well as cash flow and goal-based planning engines.
The acquisition was announced jointly by Advicent and InvestCloud, a provider of cloud-based financial digital solutions, on Wednesday. But financial terms of the transaction were not disclosed.
Asked how the deal came about, Trousdale said: “There has been mutual admiration for some time. Advicent was of interest to InvestCloud due to the combination of offering a highly differentiated planning engine while also covering advanced retirement income scenarios and estate/trust planning that focuses on the very difficult planning aspects of tax and cash flow. This was an area that InvestCloud wanted to invest in.”
The transaction is “significant because this fills a large gap in the InvestCloud offering,” according to Joel Bruckenstein, president of Technology Tools for Today (T3).
“One of the big trends over the last few years has been the increased focus on financial planning or financial wellness,” Bruckenstein told ThinkAdvisor. “Tegra118, which InvestCloud previously bought, had some financial planning capabilities, but in my opinion they were dated. This gives them a more competitive offering.”
Meanwhile, “from the Advicent side, it is no secret that Vista has been trying to sell Advicent for some time,” he explained, adding: “This puts Advicent into the hands of a firm that is potentially a good strategic fit.”
Advicent’s global headquarters are in Milwaukee, and its European base is in the Netherlands.
InvestCloud supports more than $4 trillion of assets for more than 500 direct clients, including some of the world’s largest banks, it says. The company says it offers on-demand client experiences and intuitive operations solutions using an ever-expanding library of modular apps.