Envestnet’s platform services agreement with FundQuest 18 months ago has gone well, apparently.
The firms announced this morning that Envestnet plans to buy the Boston-based TAMP specialist in a cash-funded deal for $24.4 million. In a statement, Envestnet said the agreement would allow it to offer more efficient and integrated wealth management solutions to its clients.
Clients of both firms will benefit, straight off, from combined investment management and research teams. Its sales and product development teams will also work more closely together.
“Joining Envestnet will enable us to streamline the service model to our client base and enhance our investment management product offering by combining Envestnet’s impressive universe of products and managers with FundQuest’s innovative due diligence and customization capabilities,” according to a statement from Lincoln Ross, president and chief executive officer of FundQuest.
The deal is expected to close in the fourth quarter. After that, about $6 billion of FundQuest’s assets will be reclassified under Envestnet’s purview, expanding its client base and assets under management considerably.
“We are eager to build upon FundQuest Inc.’s track record and deliver even better solutions for our expanded client base, empowering more advisors to achieve excellence in performance and client service,” according to a statement from Jud Bergman, founder and chief executive officer of Envestnet.