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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.
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