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Envestnet Acquires FolioDynamix

By Alex Padalka September 26, 2017

Wealth management tech solutions provider Envestnet has bought out its one-time rival FolioDynamix.

Subject to closing adjustments, Envestnet will pay $195 million for FolioDynamix, which offers a suite of tools for advisors that includes portfolio modeling, research and overlay management options, Envestnet says in a press release. FolioDynamix works with RIAs and other financial institutions and had more than $800 billion on its platform spread across 3.2 million investor accounts as of the end of June.

For Envestnet, the acquisition will bring commission and brokerage support as well as “complementary trading tools” to its current offerings, the firm says. Combining the two platforms, meanwhile, will add scale, cut out redundant functions and create cross-selling opportunities, according to the press release. And being part of Envestnet will let FolioDynamix expand its services as well, Joseph Mrak, the company’s chairman and CEO, says in the press release. The deal is expected to close in the first quarter of 2018, Envestnet says.

Envestnet has been on an acquisitions spree in recent years. The addition of FolioDynamix, once viewed as a competitor is Envestnet’s sixth “significant” deal since 2010, Jud Bergman, chairman and CEO of Envestnet, says in the press release.