By Milana Vinn
NEW YORK (Reuters) -Envestnet , a U.S. software vendor with a market value of about $3.5 billion, is exploring options that could include a potential sale after receiving takeover interest, people familiar with the matter said on Tuesday.
Berwyn, Pennsylvania-based Envestnet is working with investment bank Morgan Stanley to engage with potential acquirers, the sources said, requesting anonymity as the discussions are confidential.
Private equity firms, including Bain Capital, are among the parties that have expressed interest in acquiring Envestnet, the sources added, cautioning that no deal is certain.
Shares of Envestnet, which were trading about 10% higher earlier on Tuesday, jumped another 12% on the news to hit a session high of $68.83.
Last year, Envestnet added three new directors to end a board challenge from activist investor Impactive Capital that had been pushing the company to improve its performance by cutting costs.
Envestnet and Morgan Stanley declined to comment.
Envestnet, which is a provider of software to financial institutions and banks, is currently in the middle of a leadership transition. Envestnet, which provides technology tools to financial advisors and wealth managers, currently counts more than 108,000 advisors, 16 of the top 20 U.S. banks, and several top wealth management and brokerage firms among its clients, according to its website.
In January, CEO Bill Crager said he would step down from this role and continue with the company as a senior advisor starting April.
(Reporting by Milana Vinn; Editing by Chizu Nomiyama and Anirban Sen)
Disclaimer: This report is auto generated from the Reuters news service. ThePrint holds no responsibilty for its content.