Envestnet Inc., the purveyor of wealth management technology to numerous advisory firms that has been on an acquisition and integration tear of late, announced Thursday after market close that it would be buying PIETech, the parent company of popular goals-based financial planning software MoneyGuidePro. The transaction, expected to close in mid-year 2019, will be worth $295 million in cash and approximately 3.185 million shares of Envestnet, or roughly $500 million in total value.
Tony Leal, PIETech’s current co-CEO and CTO, will assume the role as CEO of the new entity and continue as CTO. He will report to Envestnet CEO Jud Bergman. The new entity will operate as Envestnet | MoneyGuide.
This move will make Envestnet a leading provider of both goals-based and cashflow-based financial planning (the firm acquired Finance Logix in 2015; terms were not fully disclosed in that deal).
The deal comes on the heels of other recent announcements in the normally quieter, more staid world of financial planning, including the February heralding of a scaled-down offering from eMoney and the late January launch of Apprise Labs (which brought three former rivals together).
This is a breaking news story and will be updated.