|[May 01, 2012]
Envestnet Completes Acquisition of Tamarac
CHICAGO --(Business Wire)--
Envestnet, Inc. (NYSE: ENV), a leading provider of technology-enabled
wealth management solutions for investment advisors, today announced the
completion of its acquisition of Tamarac Inc., a provider of
sophisticated portfolio management technology that enables Registered
Investment Advisers (RIAs) to efficiently deliver customized individual
account management to their clients. The combination of Envestnet's
wealth management and advanced portfolio solutions with Tamarac's
industry-leading software for rebalancing, practice management,
performance reporting and CRM integration enables RIAs to efficiently
deploy powerful, integrated wealth-management solutions and transform
the way they serve their clients.
"A rapidly growing number of advisors seek a fully-integrated
platform-one that provides a wide array of investment products and
outsources back-office operations," said Jud Bergman, Chairman and Chief
Executive Officer of Envestnet. "Tamarac made its reputation by
supporting independent RIAs with best-in-class portfolio-management and
rebalancing solutions. Together we will deliver a broad, integrated
platform that empowers advisors to improve client outcomes, efficiently
scale their business, and enhance client support."
Founded in 2000, Tamarac currently has relationships with more than 500
RIA firms, collectively managing over $250 billion in assets. Tamarac
CEO Stuart DePina will continue to oversee the group's efforts to help
independent RIAs streamline their operations through integrated
technology and outsourced services as Group President of Envestnet |
"This new alliance will provide the most comprehensive suite of
technology and investment solutions for the RIA industry," DePina said.
"By joining with Envestnet we have reated a comprehensive,
custodian-agnostic solution that delivers on a currently unmet need our
customers have been telling us about."
The acquisition of Tamarac is part of a long-range strategy to
accelerate Envestnet's growth through strategic acquisitions. In April,
Envestnet completed its acquisition of Prima Capital, a provider of
investment manager due diligence, research applications, asset
allocation modeling and multi-manager portfolios to the wealth
management and retirement industries, now known as Envestnet|PrimaTM.
In December 2011, Envestnet acquired FundQuest, Inc., the Boston-based
turnkey asset management program (TAMP) provider.
In connection with the acquisition of Tamarac, Envestnet established a
management equity incentive plan for certain members of Tamarac
management who will join the management team at Envestnet | TamaracTM.
The plan involves approximately 1,024,000 shares of Envestnet common
stock. Under the plan, Envestnet may distribute up to $7 million of the
shares at pre-established intervals, but in no event later than May 15,
2015, based upon Envestnet | TamaracTM meeting certain
financial targets. In addition, at the closing of the acquisition of
Tamarac, members of Envestnet | TamaracTM management used a
portion of the proceeds they receive from the acquisition of Tamarac to
acquire shares in, and options to acquire, Envestnet common stock. The
recipients of these shares and options are generally restricted from
exercising the options or disposing of the shares for a period of two
years from the grant date. The awards under the management equity
incentive plan, a copy of which was filed today as an exhibit to
Envestnet's Registration Statement on Form S-8, were approved by a
majority of Envestnet's independent directors and granted as a material
inducement to employment with Envestnet | TamaracTM as
contemplated by Section 303A.08 of the New York Stock Exchange Listed
Envestnet, Inc. (NYSE: ENV) is a leading provider of technology-enabled
wealth management solutions to investment advisors. Envestnet's
AdvisorSuite software empowers advisors to better manage client outcomes
and strengthen their practice. Envestnet offers advanced portfolio
solutions through its Portfolio Management Consultants Group, Envestnet
Envestnet | Tamarac provides leading rebalancing, reporting and practice
management software. Envestnet | Prima provides institutional-quality
research and due diligence on investment and fund managers. Envestnet |
Vantage gives advisors an in-depth view of clients' investments,
empowering them to give holistic, personalized advice.
For more information on Envestnet, please visit www.envestnet.com.
Envestnet | Tamarac™, a division of Envestnet, Inc. (NYSE: ENV), is a
leading provider of integrated, web-based portfolio and client
management software for independent advisors and wealth managers. The
firm's technology offering is further complemented by a range of
outsourced portfolio accounting services-enabling advisors to spend more
time with clients and growing their business. Envestnet | Tamarac is
based in Seattle.
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