Envestnet Inc. will acquire PIEtech Inc., which creates financial planning applications, for $295 million in cash and approximately 3.185 million Envestnet common shares.
Based on the closing price of Envestnet's common shares on March 13, the total value of the consideration is equal to approximately $500 million.
The company will finance the cash portion by a combination of cash on its balance sheet and borrowings under its revolving credit facility.
Envestnet expects the acquisition to be accretive to adjusted EBITDA, adjusted EBITDA margin and adjusted net income per share immediately.
The deal is expected to close mid-year 2019 and is subject to customary closing conditions, including the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Act.
PJT Partners LP is serving as financial adviser and Mayer Brown LLP is serving as legal counsel to Envestnet. Raymond James & Associates Inc. is serving as financial adviser and Womble Bond Dickinson LLP is serving as legal counsel to PIEtech.