Envestnet Inc., a fintech company whose chief executive officer died in a car accident 2 1/2 years ago, is exploring options after receiving acquisition interest, according to people familiar with the matter.
The Chicago-based company has recently been contacted by at least one private equity firm that is interested in acquiring it, said the people, who asked not to be identified because the matter is not public. While the company is evaluating interest, no transaction is imminent, said one of the people.
Investnet was up 8.4% to $71.56 at 1:38 p.m. in New York on Tuesday, giving the company a market value of about $3.9 billion. The stock has fallen 9.5 per cent in the past one year.
A representative for Investnet declined to comment.
Private equity firms are using their war chests to shop for technology-focused financial services firms. Buyout firms prefer these assets because they generate stable cash and can be used as a consolidation platform. Madison Dearborn Partners this month agreed to buy money-transfer service MoneyGram International Inc. for about $1 billion in cash.
Envestnet provides wealth managers, banks and other clients with software and data to help them manage and evaluate investments. According to its latest annual report, more than 106,000 consultants and more than 5,100 companies use its technology and services.
The company has been subject to acquisition speculation since the deaths of CEO Judson Bergman and his wife, Mary Miller, in a 2019 San Francisco car accident.
