Envestnet, Inc. has recently released its 10-Q report, providing an in-depth look at its financial condition and operational results. Envestnet operates through two segments: Envestnet Wealth Solutions and Envestnet Data & Analytics. The company offers a range of services, including wealth management software, data aggregation, reporting, analytics, and digital advice capabilities. Envestnet serves a wide array of clients, including financial institutions, wealth management firms, and fintech companies, with its headquarters in Berwyn, Pennsylvania.
In the 10-Q report, Envestnet discussed several key developments and financial updates. The company announced a plan of merger with BCPE Pequod Buyer, Inc., an affiliate of vehicles managed by Bain Capital Private Equity, LP. The merger agreement involves the acquisition of Envestnet by BCPE Pequod Buyer, Inc., with each share of Envestnet common stock set to be converted into the right to receive $63.15, subject to shareholder and regulatory approvals.
The report also highlighted significant financial events, including a non-cash impairment charge to goodwill of $96.3 million in the Envestnet Data & Analytics segment. Additionally, the company recognized a $19.5 million non-cash gain from the deconsolidation of a non-controlling interest and wrote off $12.9 million of net capitalized internally developed software costs.
Envestnet's leadership underwent changes, with Mr. Crager stepping down as chief executive officer and James Fox taking on the role of Interim Chief Executive Officer. The company reported a loss from operations and loss before income tax provision in most quarters, attributed to factors such as the impact of competitive pricing pressures and certain non-recurring expenses related to strategic initiatives.
The report also provided detailed financial information about Envestnet's business segments. The Envestnet Wealth Solutions segment reported a steady increase in asset-based recurring revenue, while the Envestnet Data & Analytics segment experienced a non-cash impairment charge to goodwill and a write-off of internally developed software costs.
Following these announcements, the company's shares moved 0.0%, and are now trading at a price of $62.02. For the full picture, make sure to review Envestnet's 10-Q report.
