While its Advisor Summit was happening in Chicago, Envestnet announced Wednesday that it acquired Finance Logix, a company that provides goal-based financial planning and wealth management software to banks, broker/dealers and registered investment advisors.
Envestnet agreed to give Finance Logix an undisclosed amount of cash, 123,410 shares of Envestnet stock, options to acquire more shares at $52.67 per share, and an earn-out over three years if Finance Logix meets certain financial targets.
Finance Logix’s use of sliders and dials for inputting client data has since become the standard for wealth management software. It introduced new capabilities for linking financial planning data to CRM and reporting systems within mobile apps and client portals in 2013, earning the company the “Most Innovative Product of the Year” award at the TechLeaders conference.
Envestnet will add Finance Logix’s financial planning app to its wealth management platform that already includes a suite of investment solutions, portfolio analytics, account servicing and reporting capabilities. Jud Bergman, Envestnet’s Chairman and CEO, said the purchase fulfills advisors’ demands for financial planning to flow seamlessly into investment planning and ongoing asset management on a single platform.
Stuart DePina, the group president of Envestnet Tamarac, said Finance Logix will “deliver a quantum leap in unifying the wealth planning and management process; this new functionality will become a core differentiating component of Envestnet’s Digital Advisor platform in delivering great efficiencies to the advisors we serve.”
Despite an emphasis at the Advisor Summit on supporting and expanding a singular platform that integrates all of its various technologies, Envestnet said it will continue to support an à la carte model for advisors that only want one individual software.
Finance Logix’s president and CEO, Oleg Tishkevich, will join Envestnet as the managing director and chief technology officer of financial planning.