Financial Engines has signed a definitive agreement to be acquired by funds affiliated with private equity firm Hellman & Friedman in an all-cash transaction that values Financial Engines at an aggregate value of approximately $3.02 billion.
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. The agreement has been unanimously approved by Financial Engines’ board of directors, according to a press release.
Edelman Founder and Chairman Ric Edelman will be a board member and Chairman of Financial and Investor Education of the combined company.
Today, with $169 billion in assets under management, more than 750 of America’s leading employers and largest recordkeepers use Financial Engines to help over 10 million employees with more than $1 trillion in assets to save and invest for retirement. Edelman manages more than $21.7 billion for more than 35,000 clients across the country.
Under the terms of the agreement, Financial Engines shareholders will receive $45.00 per share in cash upon the closing of the transaction. The press release notes that the price per share represents more than a 32% premium above the closing share price of $33.95 on April 27, 2018.
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.
