Financial Engines Buys Mutual Fund Store for $560 Million

Financial Engines, a California-based independent investment advisory firm, has agreed to pay $560 million in cash and stock to acquire The Mutual Fund Store, the Overland Park firm founded in 1996 by Adam Bold.

The Mutual Fund Store, which sold majority interest to Warbug Pincus in 2011, has more than $9.8 billion in assets under management for more than 39,000 clients nationwide.

Transaction is expected to close late in the first quarter of 2016, the firm said in a news release announcing the acquisition. Financial Engines said the deal would provide its clients with greater usage and retention of Financial Engines’ services, expanded market opportunities to help 401(k) participants with more complex needs, significant earnings per share accretion, and strong synergies and higher future growth.

“We are thrilled to join forces with Financial Engines to provide comprehensive advisory services through the workplace,” said John Bunch, Bold’s successor as chief executive officer of The Mutual Fund Store. “This transaction marks an exciting new chapter for our organization and for the advisory industry. We believe this powerful combination, based on our shared commitment to providing independent, objective advice, will benefit the customers we serve and accelerate growth opportunities for the combined entity.”

Financial Engines, a public company traded on NASDAQ, said it now estimates its 2016 revenue will be in the range of $403 million and $410 million. The deal entails approximately $250 million in cash and 10 million shares of Financial Engines’ common stock.