Assetmark Financial Holdings, Inc. (NYSE: AMK) has announced its definitive agreement to be acquired by GTCR, a leading private equity firm, for a total equity valuation of approximately $2.7 billion. This acquisition represents a significant development for Assetmark, a leading wealth management technology platform for financial advisors.
Assetmark, based in Concord, California, has approximately $117 billion of assets on its platform and serves over 9,300 financial advisors and over 257,000 investor households. The company delivers a comprehensive suite of technology solutions and service offerings that enable independent financial advisors to create and manage customized client investment portfolios, report and analyze performance, custody assets, attract new clients, and grow their advisory business.
Under the terms of the agreement, Assetmark stockholders will receive $35.25 per share in cash. This transaction has been unanimously approved by Assetmark's board of directors and recommended to its stockholders. The transaction has also received approval from stockholders representing a majority of the outstanding voting interests of the company.
The acquisition by GTCR is expected to support Assetmark's sustained growth and product expansion. According to Michael Kim, CEO of Assetmark, the transaction delivers substantial value for shareholders and creates new opportunities for employees. In partnership with GTCR, Assetmark aims to focus on expanding offerings for clients with new product capabilities while maintaining its reputation for excellent client service.
The transaction is also noted to be a significant achievement for Huatai Securities, Assetmark's majority shareholder, with the business growing substantially during its ownership tenure, which began in 2016.
The transaction is subject to customary closing conditions and required regulatory approvals and is expected to close in Q4 2024. Upon completion of the transaction, Assetmark's common stock will no longer be listed on any public market.
Leading financial advisory firms served as financial advisors and legal counsel for both parties involved in the transaction. The acquisition will be financed with a credit facility and equity capital from funds affiliated with GTCR.
This acquisition marks a significant milestone for Assetmark as it seeks to continue its growth trajectory and expand its offerings for financial advisors and their clients. As a result of these announcements, the company's shares have moved -2.6% on the market, and are now trading at a price of $33.99. If you want to know more, read the company's complete 8-K report here.
