ENVESTNET,INC. (NYSE:ENV) Files An 8-K Completion of Acquisition or Disposition of Assets
Item 9.01. Other Events
On April1, 2019, to an asset purchase agreement (the “Asset Purchase Agreement”), dated as of February21, 2019, between Tamarac Inc. (“Buyer”), a wholly owned subsidiary of Envestnet,Inc. (“Envestnet”), Envestnet, Performance Technologies,Inc. (“Seller”), a wholly owned subsidiary of The Charles Schwab Corporation (“Schwab”), and Schwab, Buyer completed the acquisition (the “Acquisition”) of certain of the assets, primarily consisting of intangible assets, and the assumption of certain of the liabilities, of Sellers’ PortfolioCenter Business. The PortfolioCenter Business comprised Seller’s business of providing to investment advisors desktop, hosted and outsourced multicustodial software solutions that provide data-management and performance-measurement tools, as well as customizable accounting, reporting, and billing functions consisting of the software applications comprising the commercial products known as PortfolioCenter desktop application, PortfolioCenter Hosted, and PortfolioServices.
In connection with the Acquisition, Buyer paid $17.5 million in cash plus the assumption of certain liabilities. Buyer funded the Acquisition price with available cash resources. Seller is also entitled to an earn-out payment calculated based on the PortfolioCenter Business’ revenue for the twelve-month period beginning on April1, 2020.
There is no material relationship, other than in respect of the Acquisition, between Seller or Schwab, on the one hand, and Envestnet or any of its affiliates, or any director or officer of Envestnet, or any associate of any such director or officer of Envestnet, on the other hand.
Item 9.01. Financial Statements and Exhibits.
(a)Financial Statements of Businesses Acquired.
As permitted by Item 9.01(a)(4)of Form8-K, the financial statements required by this item will be filed by amendment to this Current Report on Form8-K within 71 calendar days after the date on which this Current Report must be filed.
(b)Pro Forma Financial Information.
As permitted by Item 9.01(a)(4)of Form8-K, the pro forma financial statements required by this item will be filed by amendment to this Current Report on Form8-K within 71 calendar days after the date on which this Current Report must be filed.
About ENVESTNET,INC. (NYSE:ENV)
Envestnet, Inc. is a provider of financial and wealth management technology and services to financial advisors, investors and financial service providers. The Company’s segments are Envestnet and Envestnet/Yodlee. Its Envestnet segment provides unified wealth management software and services empowering financial advisors and institutions. Its Envestnet/Yodlee segment is a data aggregation and data analytics platform. Its services and related technology are provided through Envestnet’s wealth management software, Envestnet/PMC, Envestnet/Tamarac, Vantage Reporting Solution, Envestnet/WMS, Envestnet/Placemark, Envestnet/Retirement Solutions, Envestnet/Yodlee and Envestnet/Finance Logix. It operates approximately five Registered Investment Advisors (RIAs) and a registered broker-dealer. Its centrally-hosted technology platform services include risk assessment and selection of investment strategies and solutions, asset allocation models, and research and due diligence.
