FolioDynamix wealth platform acquired in $199 million deal

Cloud tech firm Actua will acquire an approximately 97% primary equity interest.
SEP 18, 2014
In a deal estimated to total $199 million in cash, cloud technology company Actua Corp. has agreed to acquire FolioDynamix, a cloud-based wealth management platform. Actua, formerly ICG Group, will acquire an approximately 97% primary equity interest in FolioDynamix in the transaction that is expected to close in the fourth quarter of 2014. Actua is a software-as-a-service company based in Radnor, Pa., with about 650 employees and revenue of $37.5 million for the six months ended June 30, according to the company's second-quarter earnings report. New York-based FolioDynamix offers wealth service providers and advisers a secure, cloud-based technology platform and advisory services for managing accounts, including unified managed accounts and unified managed household programs. “Actua provides extensive expertise in building successful cloud-based platforms, and we are closely aligned with a shared vision for continued growth,” said Joseph Mrak, chief executive of FolioDynamix, in a statement. “Together, we will continue to serve our blue chip client base.” Mr. Mrak could not be reached for further comment about the acquisition. Raymond James Financial Inc. announced in July of last year that FolioDynamix is administering a service called the Portfolio Management Center that allows advisers to build custom portfolios on the RJ platform. Similarly, Wedbush Securities said in August 2013 that FolioDynamics would deploy a wealth-management platform for its advisers. More recently, independent broker-dealer Securities Service Network went live on the FolioDynamix platform. At its 2014 annual meeting, ICG received stockholder approval to change its name to Actua. The change took effect on Sept. 3. The firm's ticker symbol on the Nasdaq exchange has changed to ACTA from ICGE.

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