By Andrew Welsch

Envestnet shareholders voted overwhelmingly to approve the sale of the wealth management technology company to private-equity firm Bain Capital.

Envestnet disclosed the results after the market closed Tuesday; shares of its stock were unchanged in after-hours trading. The stock ended Tuesday's regular session down 0.2% at $62.47 a share while the S&P 500 was up 0.2%. Year to date, Envestnet's stock is up 26%.

Based on a preliminary tally of voting results, about 99.33% of the votes represented at the Special Meeting were in favor, Envestnet said. Seventy-eight percent of the outstanding shares of Envestnet Common Stock entitled to vote were present, virtually or by proxy, for the vote, according to the company.

In July, Envestnet said it had agreed to sell itself to Bain in a deal that valued it at $4.5 billion ($63.15 per share). The proposed acquisition would take Envestnet private fourteen years after the company pursued an IPO. Several other financial-services companies, including BlackRock and Reverence Capital, agreed to participate in the proposed acquisition and will hold minority positions upon completion.

Founded in 1999, Envestnet is one of the wealth management industry's leading technology providers. The company went public in 2010 and completed several acquisitions in recent years to expand its offerings, such as by buying financial-planning software provider MoneyGuide. In recent years, Envestnet has struggled, however. It has been buffeted by market headwinds, and margins were hurt by the company's investment spending program. In 2022, Envestnet fell into the crosshairs of activist investor Impactive Capital.

Write to Andrew Welsch at andrew.welsch@barrons.com

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September 24, 2024 17:25 ET (21:25 GMT)

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