Actua To Buy FolioDynamix

(RTTNews) - Actua Corp. (ACTA), formerly ICG Group, said Monday that it has reached agreement to acquire FolioDynamix, a secure, cloud-based investment and wealth management platform.

In the deal, Actua would acquire an about 97% primary equity interest in FolioDynamix for an estimated $199 million in cash, subject to deal expenses and "true-up" adjustments for working capital, cash, debt and other items.

Based in New York, FolioDynamix offers wealth service providers and investment advisors a comprehensive, secure, cloud-based wealth management technology platform and advisory solutions for managing the full wealth management lifecycle across all account types, including unified managed account and unified managed household programs. The company delivers comprehensive solutions to financial advisors, professionals and institutions.

Subject to final accounting adjustments, FolioDynamix brings to Actua a current net revenue run rate of over $30 million, with positive earnings and cash flow. The company grew over 40% in 2013, and growth is expected to continue at that rate in 2014, Actua said.

The deal is expected to close in the fourth quarter of 2014.

Actua said it will update its 2014 guidance upon the close of the deal.