Edelman and Financial Engines to Form Largest RIA
Financial Engines (NASDAQ: FNGN), the nation’s largest independent investment advisor, has signed a definitive agreement to be acquired by funds affiliated with Hellman & Friedman in an all-cash transaction valued at approximately $3.02 billion.
Financial Engines (NASDAQ: FNGN), the nation’s largest independent investment advisor, has signed a definitive agreement to be acquired by funds affiliated with Hellman & Friedman in an all-cash transaction valued at approximately $3.02 billion.
Edelman Financial Services, one of the nation’s largest independent financial planning and investment management firms, will be combined with Financial Engines as part of the transaction, creating the largest independent RIA in the country. Hellman & Friedman owns a majority interest in Edelman.
Founded in 1996, Financial Engines provides a range of financial planning and investment advice and manages $169 billion in assets.
Edelman provides personal finance education and financial planning services and manages more than $21.7 billion in client assets.
Under the terms of the agreement, which has been unanimously approved by Financial Engines’ board, Financial Engines shareholders will receive $45.00 per share in cash upon the closing of the transaction.
“Financial Engines is extremely excited to enter the next chapter of growth through a partnership with Hellman & Friedman,” said Larry Raffone, President and CEO of Financial Engines. “We see tremendous alignment and commitment to our vision, and we believe the H&F partnership and the combination with Edelman is the best path for us to achieve our long-term strategic objectives, while providing significant and immediate upside to our stockholders, employees and clients.”
Raffone will serve as president, CEO and board member of the combined company.
The transaction, which is expected to close in the third quarter of 2018, is subject to approval by Financial Engines stockholders, regulatory approval and other customary closing conditions.
