Envestnet To Buy Yodlee For About $590 Mln

(RTTNews) - Envestnet, Inc. (ENV) said Monday that it has agreed to buy Yodlee, Inc. (YDLE) in a cash and stock deal valued at $18.88 per share, or about $660 million on a fully-diluted equity value basis.

As Yodlee has about $70 million in cash and cash equivalents, the deal reflects an enterprise value of about $590 million.

The deal price consists of $10.78 per share in cash and $8.10 per share in Envestnet stock, and is expected to be funded with available balance sheet cash, Envestnet stock, and up to $200 million in committed debt financing.

Founded in 1999, Yodlee has built a network of over 14,000 data sources and been awarded 72 patents. Headquartered in Redwood City, California, with more than 975 employees worldwide, the company generated revenues of $98.6 million for the 12 months ended June 30, 2015.

Funds affiliated with Warburg Pincus, which collectively own about 26.9% of Yodlee's common stock, have entered into a voting agreement pursuant to which it has committed to support the deal.

The deal is expected to close in the fourth quarter of 2015 or in the first quarter of 2016,

Anil Arora, President and Chief Executive Officer of Yodlee, will become Vice Chairman of the combined company's Board of Directors and Chief Executive of the Yodlee subsidiary when the deal closes.