BERWYN, PA — Envestnet, Inc. has finalized the sale of its open finance and data analytics subsidiary, Yodlee, Inc., to private equity firm STG, marking a strategic shift designed to strengthen Envestnet’s position as a leading Adaptive WealthTech provider. The transaction, first announced on June 25, closed earlier this month following the satisfaction of customary conditions.
STG, which specializes in investing in software, data, and analytics market leaders, plans to leverage Yodlee’s established position in the open finance ecosystem to accelerate innovation and enhance client offerings. “Yodlee’s solutions are integral to enabling trusted data access and intelligent analytics across the financial ecosystem,” said Marc Bala, managing director at STG.
For Envestnet, the divestiture allows the company to sharpen its focus on advancing its core wealth management platform and growth initiatives. CEO Chris Todd emphasized that Envestnet will maintain an ongoing partnership with Yodlee, ensuring advisors continue to benefit from its data aggregation capabilities while the company invests in expanding its technology and insights for financial professionals.
The transaction also underscores the growing importance of open finance solutions as institutions seek greater data connectivity and analytics-driven insights to compete in a rapidly evolving marketplace.
Advisors on the deal included Jefferies LLC as lead financial advisor and RBC Capital Markets as co-advisor to STG, with Paul Hastings LLP and KPMG LLP providing legal and transaction advisory support. Ropes & Gray LLP served as legal advisor and BofA Securities acted as exclusive financial advisor to Envestnet.
The sale positions both Envestnet and Yodlee to pursue specialized growth strategies, with Envestnet doubling down on wealth management innovation and Yodlee poised to scale its role as a global leader in open finance and data analytics.
For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and MSN.