Actua sells three financial software businesses, moves toward winding down operations
Actua Corp. (Nasdaq: ACTA) has reached deals to divest three majority-owned businesses in separate transactions for $549 million. After the divestitures are completed, Actua is planning on winding down its company operations.
CVC Growth Fund, an affiliate of CVC Capital Partners, will acquire VelocityEHS for $354 million. Velocity provides software services to help businesses comply with health, safety and environmental regulations. The deal also includes Actua's majority stake in insurance technology company Bolt Solutions.
“We have been proactively pursuing investment opportunities in the EHS compliance software market due to its strong secular tailwinds,” says CVC Growth managing director Aaron Dupuis. CVC raised an $18 billion fund in 2017 to seek software deals.
Separately, Envestnet is buying wealth management technology company FolioDynamix for $195 million. Chicago-based Envestnet says the acquisitions will add complementary trading and brokerage tools to the company's existing services. Envestnet provides research data software to financial advisers and institutions.
“We are pleased to reach these agreements with CVC and Envestnet, as they are the successful result of a comprehensive strategic review process undertaken by our board," says Actua CEO Walter Buckley. Radnor, Pennsylvannia-based Actua is financial services-focused cloud technology company.
Evercore Inc. (NYSE: EVR) is serving as financial adviser to Actua, and Dechert LLP is providing legal advice. RBC Capital Markets and Fried Frank Harris Shriver & Jacobson LLP are advising CVC. J.P. Morgan Securities LLC (NYSE: JPM) and Mayer Brown LLP are advising Envestnet.