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Envestnet, the Chicago-based provider of wealth management solutions for financial advisors, has agreed to acquire Prima Capital Holding Inc. for $13.75 million in cash, officials said today.
The deal, which is subject to customary closing conditions, including third-party consents, is expected to be completed by April 15.
In acquiring Denver-based Prima, Envestnet officials say they will now be able to deliver an expanded set of premium research-based solutions to financial advisors.
Prima provides investment manager due diligence, research applications, asset allocation and modeling and other services to wealth managers and retirement planning professionals. Its clientele includes regional broker-dealers, trust companies, independent registered investment advisors (RIAs), family offices and seven of the top 20 U.S. banks by total assets.
"We are eager to extend Prima's core offering with Envestnet's technology, product depth and portfolio management capabilities as well as augment our own due diligence and research offering," said Jud Bergman, chairman, founder and CEO of Envestnet.
According to terms of the deal, Prima President and CEO J. Gibson Watson III will become group president of Envestnet *Prima, a new business group within Envestnet.
"Prima's relationship with Envestnet enables us to continue delivering the top quality products, services and solutions to meet our clients' evolving needs, with added resources for further renovation," Watson said.
Last July, Envestnet bought Boston-based FundQuest Inc., which specializes in
turnkey asset management solutions, for $24.4 million in cash. Boston-based FundQuest is a
provider of managed account programs, overlay portfolio management,
mutual funds, institutional asset management and investment consulting
to RIAs, independent advisors, broker-dealers, banks, and trust
organizations.
In 2010, Envestnet and FundQuest entered into an agreement where Envestnet provided its wealth management
platform to FundQuest clients.
—Jim McConville
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