Home > Blogs > Envestnet Acquires Finance Logix

Envestnet Acquires Finance Logix

Submitted by Technology Tools for Today on May 8th, 2015


Envestnet announced that it has acquired Finance Logix, a technology company that provides leading-edge financial planning and wealth management software solutions to banks, broker-dealers and RIA firms.

“Advisors we serve have been requesting a tightly-integrated platform where financial planning flows seamlessly into investment planning and ongoing management on a single platform,” said Jud Bergman, Chairman and CEO of Envestnet. “This acquisition allows us to deliver that capability and increase the breadth of our platform and the functionality gap between our platform and competing platforms.”

Founded in 1998, Finance Logix has been providing innovative financial planning software to financial advisors and their clients, setting new standards for ease of use and ability to integrate the functionality into existing institutional applications and advisor desktops. The firm’s creative use of sliders and dials for client data input has since become the standard for the rest of the industry to follow. Serving over 20,000 advisors, Finance Logix was chosen as the “Most Innovative Product of the Year” in 2013 at TechLeaders, the annual broker-dealer technology conference. Oleg Tishkevich, Finance Logix President and CEO will join Envestnet as Managing Director and Chief Technology Officer of Financial Planning.

“We have built our company based on product innovation and technological excellence aimed at intuitive solutions to complex financial planning problems financial advisors face,” said Mr. Tishkevich. “Combining forces with Envestnet was a natural choice because of our shared vision and commitment to empowering advisors with tools to deliver better outcomes for their clients.”

With this acquisition, Envestnet will integrate Finance Logix’s financial planning application with Envestnet’s broad suite of investment solutions, portfolio analytics, account servicing and reporting capabilities to deliver an end-to-end wealth management platform that drives efficiencies and unlocks value to investment advisors and clients through the entire lifecycle of planning and investing. Envestnet will continue to support the standalone financial planning software model for existing and new clients, as well as offer an integrated solution to users of the wealth management platform.

“Finance Logix has been a pioneer in developing a goals based approach to financial planning and has developed an impressive suite of financial planning capabilities in a way that is easy to customize, deploy and integrate,” said Stuart DePina, Group President, of Envestnet | Tamarac. “Integrating their financial planning modules with Envestnet’s broad platform will deliver a quantum leap in unifying the wealth planning and management process; this new functionality will become a core differentiating component of Envestnet’s Digital Advisor platform in delivering great efficiencies to the advisors we serve.”

Envestnet has acquired Finance Logix for up-front consideration consisting of cash, 123,410 shares of Envestnet common stock and options to acquire 123,410 shares of Envestnet common stock at $52.67 per share, expiring on May 6, 2025. In addition, Envestnet has also agreed to pay an earn-out (in a mix of cash, stock and options) over a three year period, subject to Finance Logix meeting certain financial targets and other customary conditions.

With respect to the earn-out consideration payable for the first year after the closing, Mr. Tishkevich is eligible to receive, subject to Finance Logix meeting certain financial targets and his continued employment with Envestnet at the time of the payment of the earn-out consideration, up to (i) a number of shares of Envestnet common stock having a value (based on the closing price of the common stock on the NYSE on the day prior to its issuance) of $1,886,018 and (ii) options to acquire a number of shares of Envestnet common stock equal to the number of shares issued in respect of the first year earn-out. The strike price for such options will be the closing price of the common stock on the NYSE on the day prior to the issuance of the options; the options will be fully vested upon issuance and will expire on the tenth anniversary of their issuance. The foregoing earnout consideration is intended to qualify as an inducement award under NYSE Rule 303.A.08.

Mayer Brown LLP acted as legal counsel to Envestnet and Fenwick & West LLP acted as counsel to Finance Logix.

About Envestnet
Envestnet, Inc. (NYSE:ENV) is a leading provider of unified wealth management technology and services to investment advisors. Our open-architecture platforms unify and fortify the wealth management process, delivering unparalleled flexibility, accuracy, performance, and value. Envestnet solutions enable the transformation of wealth management into a transparent, independent, objective, and fully-aligned standard of care, and empower advisors to deliver better outcomes.

Envestnet’s Advisor Suite® software empowers financial advisors to better manage client outcomes and strengthen their practices. Envestnet provides institutional-quality research and advanced portfolio solutions through our Portfolio Management Consultants group, Envestnet | PMC®. Envestnet | Tamarac provides leading rebalancing, reporting, and practice management software.

For more information on Envestnet, please visit www.envestnet.com and follow @ENVintel (https://twitter.com/envintel).

Website Design For Financial Services Professionals | Copyright 2025 AdvisorWebsites.com. All rights reserved