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Envestnet (ENV) Buys Harvest Savings & Wealth Technologies

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Envestnet, Inc. (ENV - Free Report) announced its acquisition of Silicon Valley FinTech startup Harvest Savings & Wealth Technologies, yesterday. Financial terms of the deal have been kept under wraps.

Founded in 2014, Harvest Savings & Wealth Technologies is a provider of automated goals-based saving tools and wealth solutions to financial institutions like banks, credit unions and trust companies. Its capacities include opening of digital accounts and automated micro-savings.

How Will Envestnet Benefit?

The buyout is expected to strengthen Envestnet’s capabilities as an enabler of embedded finance, which the company believes will be an important driver of financial services going forward. The deal will augment the company’s API-based financial wellness ecosystem.

Harvest's technology that automates forms and processes and increases account success rates and compliance, will be made accessible to users across Envestnet's unified financial wellness platform.

"We are striving to empower intelligent, connected financial lives, creating a holistic view for investments, banking, or savings account balances,“ said Stuart DePina, president of Envestnet.

Notably, Envestnet’s shares have had an impressive run on the bourse over the past year, appreciating 30% and outperforming the 27.1% rally of the industry it belongs to.

Zacks Rank and Stocks to Consider

Envestnet currently carries a Zacks Rank #5 (Strong Sell).

Stocks worth considering in the broader Zacks Business Services sector are S&P Global (SPGI - Free Report) , Gartner (IT - Free Report)  and TeleTech Holdings (TTEC - Free Report) . While TeleTech sports a Zacks Rank #1 (Strong Buy), S&P Global and Gartner carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The long-term expected earnings per share (three to five years) growth rate for S&P Global,Gartner and TeleTech is pegged at 10%, 13.5% and 14.7%, respectively.

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