Changing the Way We Invest: Envestnet Buys Yodlee

Steve Kanaval |

investing, financial stocks, cloud computing, envestnet, yodlee, YDLE, ENV, buyout

Chicago-based Envestnet (ENV) , who specializes in online investment tools, paid more than $600m for Yodlee (YDLE) , who provides investment Apps to more than half of the large banks in the US. On the back of a Wall Street Journal article last week about the ever-changing investment options for mobile users, the way we invest in general prompted this takeover.

Shares in Yodlee are up almost 30% in morning trading on this acquisition and shares of Envestnet were lower by over 20% as Envestnet gets a Cloud vendor and the race to merge like companies and leverage synergies and market share continues.



Yodlee has been up and down in 2015 after selling off in the first quarter of 2015 and looking terrible for holders, down some 25% before the market recognized that an acquisition was imminent. The recent Wall Street Journal article led investors to get on board, and after the company conference call yesterday, they announced they were being bought outright by Envestnet.

Yodlee operates a technology and applications platform that provides digital financial services in the cloud and delivers a range of financial applications for the retail financial, wealth management, small business, credit card, and other financial solutions sectors.

These FinApps allows consumers and small businesses to simplify and manage their finances, review their financial accounts, track their spending, calculate their net worth, and perform various other activities.

The Yodlee Financial Cloud platform also enables its customers to develop their own applications through its open application programming interfaces, which deliver trusted and secure data, money movement solutions, and other feature functionalities. The company also offers data solutions and market research services. It serves financial institutions, as well as internet service companies providing financial solutions, and third-party developers of financial applications.

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Companies

Symbol Name Price Change % Volume
ENV Envestnet Inc 49.65 -0.40 -0.80 131,033 Trade
YDLE Yodlee Inc n/a n/a n/a 0 Trade

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