In a deal matching asset management solutions and financial data, Envestnet has announced that it is acquiring Yodlee in a cash and stock deal with an enterprise value of $590 million. A provider of reporting and portfolio monitoring solutions for asset managers and financial advisors, Envestnet views the acquisition as being complementary to its existing offering and fitting the needs of its end-user customers.
At the heart of the deal is Yodlee’s financial data platform. Connecting with over 850 financial institutions such as banks and lenders, Yodlee’s API solutions is used by firms to automatically collect user information and simplify their account onboarding process. Specifically, the firm has received requests from marketplace lenders who use Yodlee’s API to evaluate customer banking information that can be used to better understand their borrowing needs and ability to pay back loans. (The use of a ‘banking API’ for brokers to onboard clients and learn more about them has also been a topic of discussion from our contributor network)
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According to Envestment, they believe that the deal will be accretive to their adjusted EBITDA per share by 2016 and adjusted EPS in 2017 and beyond. For the most recent twelve months ending June 30, 2015, Yodlee reported revenues of $98.6 million.
Bill Crager, President of Envestnet, commented about Yodlee’s value as he stated, “Yodlee is the preeminent name for data in financial services today. The core of every financial transaction and every financial decision is data. The Yodlee platform brings together client permissioned financial data and analytics in unique ways to power personalized and dynamic financial apps and generate business insights.”