Although Financial Engines Inc. has agreed to be acquired by the private equity firm Hellman & Friedman, four other suitors made bids for the provider of managed accounts, investment advice and education, according to a preliminary merger proxy filed with the Securities and Exchange Commission.
The suitors were not identified in the document that reveals extensive discussions before Financial Engines announced its agreement with Hellman & Friedman on April 30 in which the private equity firm would pay $45 a share.
One bidder offered $43.50 to $45 a share, according to the document filed with the SEC on May 21. Another bidder offered $42 a share, then dropped out because Financial Engines' "expectations regarding valuation were higher" than this bidder was willing to pay, the document said.
The document added that some of the bidders discussed making a combined offer for Financial Engines; then another bidder dropped out because it was unwilling to go above a certain price. Two bidders combined forces but they offered a price in the range of $41.50 to $43 per share while Hellman & Friedman stuck to its $45 per share offer worth about $3 billion.
The board of Financial Engines unanimously approved Hellman & Friedman's bid. The offer still must be approved by Financial Engines' shareholders — a voting date hasn't been set — and by regulators. The deal is expected to close during the third quarter.
Hellman & Friedman will merge Financial Engines with Edelman Financial Services, a private wealth management and investment advisory firm. Hellman & Friedman owns a majority stake in Edelman and will own the majority stake in the combined companies.
Financial Engines manages more than $169 billion in assets, according to its most recent Form ADV.