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Holy Yodlee! Envestnet To Buy Yodlee for $660 Million

Yodlee_homepage_Aug2015

Yodlee—a Finovate alum and FinDEVr 2015 sponsor—has agreed to be acquired by Envestnet. Envestnet will pay $660 million in cash and stock, valuing the company’s shares at $18.88.

The acquisition comes less than a year after the company went public, trading under the ticker YDLE on the Nasdaq exchange. The acquisition price of $18.88 is a premium of nearly 50% over both the stock’s closing price on Monday, as well as its closing price on the day of its IPO—$12.60 and $13.44, respectively. According to American Banker, Envestnet secured $200 million in debt financing commitments to fund the deal, as well as using cash from its own balance sheet.

Yodlee CEO Anil Arora will continue to run Yodlee, and has been named vice chairman of the combined entity. In a statement, Arora praised the acquisition, saying it would “create a company unmatched in its ability to improve and simplify people financial lives around the world.”

Yodlee_stage_FS2015

From left: CMO David Lee; John Bird, VP of product marketing; Katy Gibson, VP of product applications, demonstrated Sense, Yodlee’s PFM app, at FinovateSpring 2015 in San Jose.

Bill Crager, Envestnet president, says Yodlee would bring a “more interactive and informative digital advice experience” for Envestnet clients, especially in the areas of data mining and predictive analytics. The goal is to give Envestnet more firepower as it tries to win over financial advisers who are not affiliated with larger firms, such as Merrill Lynch or Morgan Stanley. Envestnet was founded in 1999, and is based in Chicago Heights, Illinois.

Yodlee has distinguished itself both as an innovative aggregator of data for technology companies working in the financial services space, as well as a compelling solution-builder in its own right. The company powers financial solutions for more than 20 million users and more than 850 FIs, and produced revenues greater than $98 million for the 12-months ending 30 June 2015.

Founded in 1999 and headquartered in Redwood City, Yodlee is a veteran of both Finovate and FinDEVr conferences. The multiple Best of Show winner’s last Finovate appearance was at FinovateSpring 2015 in San Jose. Yodlee was a presenter at the inaugural FinDEVr 2014 conference in San Francisco last fall.