Envestnet to Sell Open Finance Subsidiary Yodlee to STG

The transaction is expected to close in the third quarter, subject to customary closing conditions, the companies said in a Wednesday (June 25) press release.

STG is focused on investing in innovative software, data and analytics firms, and Yodlee will join STG’s global technology portfolio that includes RSA, Trellix and SurveyMonkey, according to the release.

Marc Bala, managing director at STG, said in the release that the new partnership will accelerate Yodlee’s investment in “product innovation, customer success and long-term growth.”

With the help of STG’s transformation experience, Yodlee will focus on innovation in technologies and enhanced solutions for the financial sector, per the release.

“Yodlee sits at the intersection of trusted data access and intelligent analytics,” Bala said. “It has built deep integrations across the financial ecosystem and earned the confidence of the world’s leading banks, asset managers and wealth platforms.”

For Envestnet, the transaction will allow it to focus on its core offerings, including its wealth management platform, Envestnet CEO Chris Todd said in the release.

“Through our continued partnership with Yodlee, advisors will retain access to Yodlee data aggregation technology that helps power their business,” Todd said.

Envestnet became a private company in November when it closed its acquisition by affiliates of vehicles managed or advised by Bain Capital in a deal worth about $4.5 billion.

The company said at the time that the move paved the way for “accelerated growth” and that it had $6.5 trillion in platform assets, more than 20 million accounts and served more than 111,000 financial advisors.

Todd said in May that Envestnet was enhancing its wealth management solutions by continuing to invest in tax intelligence, trading flexibility, client engagement and advisor productivity.

“We have the infrastructure to continue to lean in and develop the products and solutions advisors need to be quicker and more agile as their business models change,” Todd said.

Envestnet acquired Yodlee in 2015 in a cash and stock transaction that represented a fully diluted equity value of about $660 million.