Envestnet, which went personal in a sale to Bain Capital final 12 months, introduced plans to promote Yodlee, the monetary information aggregation subsidiary, to STG, a Menlo Park, Calif.-based personal fairness agency. The deal is predicted to shut within the third quarter.
STG, beforehand often known as Symphony Expertise Group, was based in 2002 and now manages over $12 billion in belongings. Yodlee will come beneath STG’s world know-how portfolio, which incorporates RSA, Trellix and SurveyMonkey.
“STG intends to leverage its transformation expertise to assist Yodlee ship elevated worth to shoppers, entice and retain prime expertise, and obtain best-in-class enterprise efficiency,” STG stated in an announcement. “With a concentrate on customer-centric innovation, the corporations goal to quickly put money into applied sciences and ship enhanced options to the monetary sector.”
Envestnet acquired Yodlee in 2015 in a money and inventory transaction price $660 million. Yodlee was based in 1999 and has since constructed a community of greater than 19,000 information sources offering data to 38 million paid customers and greater than 700 fintech corporations as of the top of 2023, in keeping with its web site.
“Yodlee sits on the intersection of trusted information entry and clever analytics,” stated Marc Bala, managing director at STG, in an announcement. “It has constructed deep integrations throughout the monetary ecosystem and earned the arrogance of the world’s main banks, asset managers, and wealth platforms.”
On the finish of 2023, Bloomberg reported that Envestnet was exploring the sale of Yodlee, citing individuals with data of the matter. The publication referred to a Raymond James analyst word that stated the “persistent deterioration within the Yodlee enterprise” was a priority for Envestnet.
Lately, Envestnet and Yodlee have confronted two lawsuits, one involving copyright infringement and a category motion go well with involving allegations of unsecured information and ‘illegal assortment and use of delicate private information from hundreds of thousands of shoppers.’
In August 2019, software program improvement agency FinApps filed go well with, alleging that Yodlee had reverse-engineered FinApps’ code and claimed it as its personal. In 2020, a U.S. District Courtroom choose dismissed two key counts within the case however allowed it to proceed primarily based on seven others within the unique grievance. That case is ongoing.
Within the second case, filed in 2020, a New Jersey resident proposed a category motion go well with, asserting that the fintech entities had not carried out sufficient to safeguard home shopper information, together with partaking in “numerous acts of deceit” and failing to implement some safety protocols which might be already in place for Yodlee customers in Europe. Yodlee reached a settlement earlier this 12 months on that case.
Final November, Envestnet offered the corporate to Bain Capital in a take-private deal, with the personal fairness agency paying about $4.5 billion for the wealthtech firm, in keeping with an announcement.
“This transaction is step one in our price creation plan as a non-public firm and can permit Envestnet to focus extra deeply on its core linked wealth administration platform, superior insights and complete options,” Envestnet CEO Chris Todd stated in an announcement. “Via our continued partnership with Yodlee, advisors will retain entry to Yodlee information aggregation know-how that helps energy their enterprise.”
Envestnet works with greater than 500 of the nation’s largest RIA corporations, has over 111,000 advisors and holds $6.5 trillion in whole belongings on its platform.
