Exits & Deep Reads

Bain Capital takes Envestnet private for $4.5B (TWIF 7/14)

Hello Fintech Friends,

We'll be ramping up our Asian events in the second half of the year, and would love to partner with you if you're building in the Southeast Asian fintech community! Reach out to osborne@thisweekinfintech.com.

Beyond my wildest dreams, Fintech Happy Hour has grown to become a meeting ground for people to produce non-linear returns - for themselves and their companies.

We've come a long way. But more than the numbers in the image, I'm happiest when people tell me they:
- got job offers… pic.twitter.com/d1z3wyN7XO
— Osborne Saldanha (@os7borne) July 12, 2024

I also wanted to highlight Jason from Fintech Business Weekly this week, who undertook the massive task of writing one of the few books on fintech:

Banking as a Service: Opportunities, Challenges and Risks of New Banking Business Models is out now. "From consent orders, to a bankruptcy that resulted in end users losing access to their money, to a Russian hack of a major bank in the space – the book tackles the current state of BaaS in the US." The book doesn't officially publish til the end of the year, but TWIF readers get 20% off with the promo code "BAASISLAND" and free shipping in the US or UK when you buy directly from the publisher.

Please find another week of fintech exits and deep reads below. (👍👎 Have feedback for us? Let us know!)

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📖 Read of the Week

☯️ Exits

🤝 M&A - Fintech

Private equity firm Bain Capital agreed to acquire publicly-traded Envestnet, a financial software vendor that counts 16 of the 20 biggest U.S. banks among its customers, for $4.5 billion. Envestnet offers software for wealth managers and data for financial institutions and investment research firms; it also is the parent company (via acquisition) of open banking provider Yodlee.
Equals Group, which develops and sells scalable payment platforms to enable businesses in the UK to make payments, received a takeover proposal valuing the company at £253 million from a consortium including the fintech company Railsr and investment firm TowerBrook.
Private equity firm Genstar is in advanced talks to buy a significant stake in payments processor AffiniPay in a deal that could value it at nearly $3 billion including debt.
GEP, a supply chain software and consulting firm, acquired OpusCapita, a Finnish provider of e-invoicing and accounts payable automation software.
Broadridge Financial Solutions, a provider of communications software to financial services firms, acquired CompSci, a tech platform for the preparation and processing of SEC filings for public companies and funds.
insightsoftware, a provider of solutions for the Office of the CFO, acquired LeaseAccelerator, a provider of automated solutions for lease accounting and real estate lease administration.
Fintel, a financial intelligence provider to retail investors, acquired UK fintech Threesixty, a provider of software to financial advisors and wealth managers, for £14.6 million from asset management firm Abrdn.

🏦 M&A - Bank and FinServ

Global bank Barclays sold its German consumer finance business to a subsidiary of Austrian bank Bawag Group as part of its plan to simplify its business.
French bank Credit Agricole is considering the acquisition of Société Générale's German consumer-finance business Hanseatic Bank for a price around €600 million.
TA Associates took a stake in Indian lender Vastu Housing Finance.

Wealthfront is a monster business.

-$200m revenue
-$89m EBITDA
-profitable for 6 quarters
-on track to double!

Almost certainly worth much more than the $1.4b it was almost acquired for.

Hat tip @dkf @arachleff @wauckward @danielcarroll @adamnash pic.twitter.com/zKaRzwPsXH
— tyler hogge (@thogge) July 6, 2024

Saying "go work with a bank" works well if you have a stable W-2 job, good credit and have enough assets to avoid monthly minimums.

But there are a lot of folks that don't fit that bill and they've turned to fintech.
— Matt Janiga 💥♻️ (@regulatorynerd) July 10, 2024

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