Investment adviser Financial Engines Inc. (Nasdaq: FNGN) is buying the Mutual Fund Store LLC from Warburg Pincus for $560 million in cash and stock.

Purchase details call for Financial Engines to pay $250 million in cash and issue 10 million shares in common stock, giving Warburg Pincus a 12.5 percent stake in Financial Engines. As a result, Warburg Pincus managing director Michael Martin will join the buyer’s board. The PE firm acquired the Mutual Fund store in 2011.

The Mutual Fund Store, founded in 1996, is a financial planner and gives in-person investment advice at 125 locations. The target has about 84,000 accounts and has around $9.8 billion in assets under management. “This acquisition advances our vision to provide independent advisory services to more people and we believe will also fuel significant future growth,” says Financial Engines CEO Lawrence Raffone.  Financial Engines helps companies give financial advice to their employees. Some of its clients include IBM (NYSE: IBM), Kellogg Co. (NYSE: K) and Microsoft Corp. (Nasdaq: MSFT).

Some other recent financial service deals include Investcorp’s purchase of Ssaris Advisors LLC’s hedge fund of funds division and Virtusa Corp.’s (Nasdaq: VRTU) acquisition of information technology business Polaris Consulting & Services Ltd. for $270 million

DBO Partners and Winthrop Shaw Pittman are advising Financial Engines. JPMorgan Chase & Co. (NYSE: JPM) and Wachtell Lipton Rosen & Katz are advising Warburg Pincus.

The outlook for the financial services sector remains optimistic, according to according to Mergers & Acquisitions Mid-Market Pulse, a forward-looking sentiment indicator.