Financial Engines, which claims to be America’s largest independent investment advisor and was founded by Nobel Prize-winning economist William Sharpe, announced its acquisition by Hellman & Friedman.
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.
H&F owns a majority interest in Edelman, as well.
Under the terms of the agreement, Financial Engines‘ shareholders will receive $45.00 per share in cash upon the closing of the transaction.
“Financial Engines and Edelman are two firms with similar proud legacies of providing investors independent financial advice,” according to the announcement. “Founded in 1996, Financial Engines uniquely leverages proprietary technology and a network of advisors to deliver a broad range of financial planning and investment advice to investors through nationwide advisor centers and employees at their workplace.”
Financial Engines reportedly has $169 billion in assets under management, and “more than 750 of America’s leading employers and largest recordkeepers.” It claims to help over 10 million employees with more than $1 trillion in assets save and invest for retirement.
“Over the past 30 years, Edelman has established itself as a leader in personal finance education and financial planning services,” the companies added. “Edelman has become one of the largest independent financial planning firms in the nation, managing more than $21.7 billion for more than 35,000 clients across the country.”
“After a thorough assessment, the Board has determined that this transaction represents a compelling outcome for our stockholders, customers and employees. It recognizes the value of Financial Engines’ franchise and mission while providing stockholders with a substantial premium,” Blake Grossman, Chairman of the Board of Financial Engines, said in a statement.
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.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.