AdvisorEngine acquires Junxure: Flash briefing for Tuesday January 2, 2018

AdvisorEngine acquires Junxure. Full transcript below.

Welcome to the FPPad fintech briefing for Tuesday, January 2, Here’s the top fintech story you need to know today.

Well the 2018 fintech news cycle is already off to a quick start, as AdvisorEngine announced the acquisition of CRM Software, the makers of Junxure CRM. Terms of the deal were not disclosed, but in its press release, AdvisorEngine also said it received a commitment of $30 million in new financing from WisdomTree Investments, of which $22 million was funded today with a majority of those proceeds used to fund the acquisition of Junxure.

The new funding from WisdomTree builds on the company’s $20 million dollar investment for 33% of AdvisorEngine made back in December of 2016.

So here’s my quick take on the news: Junxure has a very loyal base of users, especially among those firms that continue to use the company’s flagship desktop software introduced back in 2001. However, the rollout of the Junxure Cloud solution has taken *much longer* than I expected, and advisors continue to tell me today that they can’t convert 100% of their desktop data to the Cloud version.

So this acquisition by AdvisorEngine gives me new hope that development, support, and expansion of the Junxure Cloud solution will receive new energy and direction. Junxure co-founder Greg Friedman will take on a new role as a strategic advisor with the company.

And from an industry perspective, 2018 is shaping up to be a year where CRM providers could be in play as companies continue to consolidate application in an attempt to offer an all-in-one technology solution for financial advisors. SS&C Advent acquired Salentica in late 2016, leaving Redtail and Wealthbox among the few independent CRMs that come to mind with large user bases, followed by providers like Grendel, ProTracker, and AdvisorsAssistant that could be acquisition targets as the year progresses.

If you have some insights on the Junxure acquisition, send me a message on Twitter I’m @billwinterberg, or email me at bill@fppad.com.

I’m Bill Winterberg, and those are your fintech headlines for today from FPPad.com, be sure to check back in with me later for more fintech news.

 

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