Envestnet to Acquire Vestmark

Envestnet will acquire Vestmark, combining Envestnet’s wealth-management platform with Vestmark’s portfolio accounting, trading and rebalancing technology.

The announcement states Vestmark’s order management and model delivery capabilities will be folded into Envestnet’s adviser-facing tools, giving firms that use Envestnet access to integrated trading, compliance and portfolio reporting functions. The agreement covers Vestmark’s software and services for registered investment advisers, broker-dealers and asset managers.

Envestnet plans to integrate Vestmark’s trading and rebalancing engines with its advisory platform and model marketplace so advisers can manage client accounts and models on a single system. The companies said the transaction is intended to simplify operational workflows for firms that now use multiple vendors for custody, order routing, tax management and model implementation.

Vestmark’s technology sends trading instructions to custodians and broker-dealers and reconciles positions across accounts. Envestnet expects those capabilities to complement its financial planning, data aggregation and analytics tools and to support advisers working with unified managed accounts and multiple account types.

The firms cited demand from advisers and institutions for more consolidated platforms that reduce manual processes and provide consistent investment implementation and reporting.

Terms of the acquisition, including the purchase price and closing timetable, were not disclosed. The deal is subject to customary closing conditions and regulatory approvals. Employees, clients and partners will remain under existing arrangements until integration steps are announced.

No formal quotes were included in the announcement. Both firms said they intend to maintain service continuity for current Vestmark customers while aligning product road maps and support teams during the integration process.