Hellman & Friedman agreed to acquire managed account provider Financial Engines in a deal worth $2.8 billion, a news release said.
The deal, for which Financial Engines shareholders will receive $45 per share in cash, is expected to close in the third quarter pending shareholder approval. According to the news release, the offer per share creates a 32% premium above the April 27 closing share price of $33.95.
Financial Engines will be merged with Edelman Financial Services, a financial planning firm in which Hellman & Friedman owns a majority stake. The private equity money manager purchased the majority stake in Edelman in 2015.
The combined entity will retain the Financial Engines name, a Financial Engines filing with the Securities and Exchange Commission said. Larry Raffone, president and CEO of Financial Engines, will retain the title with the combined company, the filing said.
Financial Engines manages more than $169 billion in assets, according to its most recent Form ADV.
Alexandra Gardell Kreuter, a spokeswoman for Financial Engines, and officials at Hellman & Friedman could not be immediately reached to provide further information.