OAKS, Pa. - SEI (NASDAQ: SEIC), a financial services company with a market capitalization of $10.88 billion and impressive 78.56% gross profit margin, has acquired Boston-based tax-smart technology provider LifeYield, marking a significant move in the financial services industry. According to InvestingPro data, SEI has demonstrated strong financial performance with 8.53% revenue growth in the last twelve months. The acquisition, announced today, positions SEI to offer the first real-time, automated unified managed household (UMH) capabilities through a fully bundled overlay solution aimed at optimizing after-tax returns. The company's stock is currently trading near its 52-week high of $86.04, reflecting market confidence in its strategic initiatives. InvestingPro analysis indicates the stock is fairly valued based on its proprietary Fair Value model, with 12 additional exclusive insights available to subscribers.
The integration of LifeYield's technology into SEI's platform will enhance the efficiency of advisors and wealth managers, improve investor outcomes, and enable tax-efficient investing at scale. SEI's UMH capabilities will now include asset location, tax-loss harvesting, multi-account household portfolio management, tax transition services, and withdrawal optimization, among other services.
J. Womack, Chief Product Officer at SEI, emphasized the growing demand for personalized tax management solutions, particularly as Millennials and Gen Xers approach their prime earning years and baby boomers enter retirement. The acquisition is set to create a comprehensive suite of tax management solutions, leveraging LifeYield's technology to maximize wealth accumulation and retirement income.
Mark Hoffman, CEO of LifeYield, expressed enthusiasm about joining SEI and the opportunity to expand the reach of their technology to a broader audience. LifeYield's modular solutions, previously available through a Software-as-a-Service model, will now be integrated into the SEI Wealth Platform to accelerate investment implementation across household accounts.
Arthur Worthington, Senior Business Development Director at SEI, highlighted the competitive edge the acquisition brings, allowing SEI to offer greater control and personalization in tax management. He also noted the importance of providing a 360-degree view of client household accounts in the evolving landscape of wealth management.
The acquisition is not considered significant in terms of asset size or material impact on SEI's operations or financial results. The LifeYield team will join SEI, bringing expertise in technical, sales, client service, and marketing areas. This move builds upon a strategic partnership established in 2022 between SEI and LifeYield.
SEI manages, advises, or administers approximately $1.6 trillion in assets as of September 30, 2024. The company maintains a strong financial position with a current ratio of 5.8 and has maintained dividend payments for 37 consecutive years, demonstrating consistent shareholder returns. This acquisition reflects SEI's commitment to connecting the financial services industry with innovative technology and investment solutions. For a comprehensive analysis of SEI's financial health and future prospects, investors can access the detailed Pro Research Report available on InvestingPro, which provides expert insights on this and 1,400+ other US equities.
The information in this article is based on a press release statement.
In other recent news, SEI, a financial services company, reported robust growth in its recent quarterly results, surpassing estimates with an earnings per share (EPS) of $1.19, a significant increase in operating margins, and record-breaking sales events totaling $46 million. The core EPS, adjusted for one-time gains, was estimated at $1.11. On the back of these strong results, Piper Sandler revised its price target for SEI Investments (NASDAQ:SEIC), raising it to $77, while Oppenheimer increased its price target to $85, both maintaining confidence in SEI Investments' potential for continued financial growth.
In a strategic partnership, Arrow Global Group Limited selected SEI to provide fund administration, loan operations, and investor services for its private credit fund based in Luxembourg. SEI's technology will be leveraged to enhance transparency and streamline processes. This partnership reflects the ongoing trend of alternative asset managers seeking advanced operational solutions to meet the growing investor interest in private credit markets.
SEI's revenue from the Federal Deposit Insurance Corporation (FDIC) cash program is projected to double in the fourth quarter due to enhancements that increased the cash sweep. The company's assets under management, administration, and advisement have also reached new highs, contributing to its robust financial performance. These are recent developments that underline SEI Investments' strong position in the financial sector.
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