Envestnet nets Prima in $14M deal

Company to purchase analytics and research specialist in all-cash deal

Feb 10, 2012 @ 3:52 pm

By Jeff Benjamin

Envestnet Inc., which offers a technology platform to help financial advisers manage client assets, is expanding and deepening its market share by acquiring Prima Capital Holdings Inc.

“We like the people [at Prima Capital], we like the caliber of their research, and their clients are very interesting to us as well,” said Bill Crager, president of Envestnet, which has $14 billion on its platform.

Chicago-based Envestnet is paying $13.75 million in cash for Prima Capital, a Denver company that specializes in providing analytic and research tools to institutional-level investors, financial advisers and banks.

The deal is expected to close within the next three months.

“We are eager to extend Prima's core offering with Envestnet's technology, product depth and portfolio management capabilities, as well as augment our own due diligence and research offering,” said Jud Bergman, Envestment's chairman and chief executive.

Envestnet, a publicly traded company with more than 500 employees, will move all 35 of Prima Capital's employees into its Denver office.

“Prima's relationship with Envestnet enables us to continue delivering top-quality products, services, with solutions to meet our clients' evolving needs, with added resources for further innovation,” said J. Gib Watson III, Prima's president and chief executive.

Mr. Watson, who founded Prima Capital in 1999, will become group president of Envestnet-Prima, a new business group within Envestnet.

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