Jud Bergman at the Envestnet Advisor Summit in 2015.
Envestnet announced Monday that it is spending $195 million to acquire wealth management platform FolioDynamix. The deal will bring Envestnet's total platform assets to nearly $2 trillion across 10 million investor accounts.
"Acquiring FolioDynamix advances our growth strategy and creates value for our shareholders," Jud Bergman, chairman and CEO of Envestnet, said in a statement.
He added on a conference call on Monday that this move puts Envestnet on a path to be "the financial wellness network," connecting enterprises, advisors and clients for the best possible outcomes.
Over the past two years, Envestnet has been developing an open-architecture strategy it calls "Open ENV," Bergman said, that he believes makes the firm "uniquely positioned" to integrate FolioDynamix's platform into its own.
"Open ENV creates a quicker path to integration between Envestnet and FolioDynamix, more capabilities [with] the least disruptive approach that enables us to introduce more services and capabilities to our combined base of customers," he said.
Bergman said on the call that he expects no disruption of trading services on FolioDynamix's platform through the transaction.
