Shares of the California-based asset management company Financial Engines Inc. (NASDAQ:FNGN) soared over 30% on Monday after the company announced that they will be acquired by Hellman & Friedman (private).
Financial Engines will be purchased by Hellman and Friedman for approximately USD $3.02 billion, or $45.00 per share in cash.
Shares of Financial Engines reached just below the agreed value and closed at $44.65.
The agreement was unanimously approved by the Boards of both companies and is expected to close in the third quarter of 2018.
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The company will then be merged with financial planning and investment firm Edelman Financial Services, which Hellman & Friedman have a majority interest in.
Financial Engines, which was founded in 1996, currently manages more than 750 of the top American employers with over $169 billion in assets.
Edelman manages 35,000 clients across the United States and over $21.7 billion in assets.
Larry Raffone, President and CEO of Financial Engines has said that the company “is extremely excited to enter the next chapter of growth through a partnership with Hellman & Friedman.”
Founder and Chairman of Edelman Financial, Ric Edelman is “very excited to join forces with Financial Engines to serve more clients better than ever and to accelerate growth in the business.”
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Edelman will serve as the Chairman of Financial and Investor Education of the newly combined company, while Raffone will act as President and CEO.
Both Raffone and Edelman will be on the combined company’s board of directors.
According to Blake Grossman, Chairman of the Board of Financial Engines, this agreement “recognizes the value of Financial Engines’ franchise and mission while providing stockholders with a substantial premium.”
Together, the companies hope to create a unique financial business for investors.
Featured Image: Depositphotos/© Violka08
