Envestnet, the open-architecture, cloud-based turnkey asset management platform (TAMP), and BlackRock, the giant asset manager, are partnering to integrate BlacRock’s Digital Wealth technologies into Envestnet’s platform for registered investment advisors and other wealth managers.
The partnership calls for BlackRock, Inc., to acquire a 4.9% equity stake in Envestnet by purchasing about 2.36 million shares of Envestnet common stock for $52.13 per share. The aggregate purchase price is about $122.8 million.
Envestnet will also give BlackRock a warrant to purchase about 470,000 shares of Envestnet common stock at an exercise price of $65.16 per share, subject to customary anti-dilution adjustments. BlackRock can exercise the option for four years from the date of issue.
The Company expects the investment to close by the end of 2018, subject to clearance under the Hart-Scott Rodino Antitrust Improvements Act and other customary closing conditions.
Envestnet’s financial advisor for the deal is PJT Partners LP. Mayer Brown LLP is its legal counsel. BlackRock’s legal counsel is Skadden, Arps, Slate, Meagher & Flom LLP.
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