Fintech Heats Up with Second Largest Acquisition of the Year: Yodlee

Financial consultancy firm Envestnet has acquired Yodlee for around $590 million, marking the second largest fintech acquisition of the year. With over 20 million paid users, Yodlee offers financial data aggregation tools to its clients, including credit card statements, bank statements, investment portfolios, etc. The deal valued the company’s stock at $18.88 per share, a 33 percent premium.

As the fintech industry continues to expand, larger financial institutions are eager to solidify their market position in the growing industry. Last month, Xoom was acquired by Paypal Holdings for $890 million, the largest fintech acquisition of the year. Envestnet’s investment continues the rapid expansion of interest in the financial technology industry.

Yodlee has dealings with over 850 financial institutions and around 975 employees across the globe. Since its inception 16 years ago, the company has acquired 72 patents, which includes an abundance of digital financial apps and APIs for data analytics. Yoldee posted revenue of $98.6 million in the 12 months to June 30. The deal is widely believed to improve both profits and overseas expansion opportunities.

“Yodlee is the preeminent name for data in financial services today. The core of every financial transaction and every financial decision is data. The Yodlee platform brings together client permissioned financial data and analytics in unique ways to power personalized and dynamic financial apps and generate business insights,” said Bill Crager, President of Envestnet.