Why Envestnet Shares Jumped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Envestnet (NYSE: ENV  ) have jumped today by as much as 13% after the company said it closed the acquisition of Prudent Wealth Management Solutions, or WMS.

So what: Envestnet had announced in April that it was planning to acquire Prudential's WMS division to bolster its presence in the wealth management software industry. The move will strengthen Envestnet's presence in the banking industry and makes Envestnet the largest independent wealth management platform.

Now what: CEO Jud Bergman said the acquisition will create a powerful and scalable platform that will expand the company's leadership in key markets. Envestnet acquired Prudential WMS for $10 million in cash, in addition to contingent consideration of $23 million in cash to be paid out over three years. At the end of the first quarter, Prudential WMS was administering approximately $23.7 billion in assets for institutional clients.

Interested in more info on Envestnet? Add it to your watchlist by clicking here.

A fresh idea for 2013
The Motley Fool's chief investment officer has selected his No. 1 stock for this year. Find out which stock it is in the special free report: "The Motley Fool's Top Stock for 2013." Just click here to access the report and find out the name of this under-the-radar company.


Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2519040, ~/Articles/ArticleHandler.aspx, 10/22/2014 12:55:54 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement