Wealth management technology provider Envestnet has agreed to acquire all of the assets of the Wealth Management Solutions division of Prudential Investments.
The acquisition will position Envestnet as one of the largest independent wealth management platform, while advisors and their clients will benefit from its scalable wealth management platform, institutional-quality manager research and broad product access.
Prudential Investments president Stuart Parker commented, "The combination of WMS and Envestnet will provide clients of WMS with an even stronger technology and wealth management platform."
All the assets of Prudential WMS will be acquired for $10m in cash on closing, including contingent consideration of up to a total of $23m in cash to be paid over three years.
Expected to close by early third quarter of 2013, the transaction is subject to customary closing conditions, including customer consents.
Silver Lane Advisors and Wilmer Cutler Pickering Hale and Dorr acted as financial and legal advisors to Prudential Financial, respectively, while Mayer Brown LLP served as legal counsel to Envestnet.
Prudential WMS managed nearly $22bn on behalf of institutional clients, as of 31 December 2012.