Evestnet has announced the sale of Yodlee to private equity firm STG for an undisclosed sum. The sale marks a major event in the consumer transaction data space, with Yodlee being among one of the primary sources of US consumer transaction data. 

While a major development, speculation about a potential Yodlee sale has circulated for years, especially after Bain Capital announced it was acquiring Evestnet nearly a year ago. 

Due to its impact on Yodlee’s potential value, we previously predicted that any sale of Yodlee would likely wait until the regulatory environment surrounding open banking in the US settled after the presidential election. While the Trump administration has yet to definitively act on the CFPB’s open banking rule, it seems Evestnet was able to find a buyer in STG.

Focusing on growing mid-market software and data solutions, STG holds a portfolio with other data providers, including Dodge Construction, Govini and previously IRI. 

In a press release, STG stated it is ‘excited to partner with the team to accelerate their investment in product innovation, customer success, and long-term growth.’ In this way, it seems that STG intends to focus on improving Yodlee’s product from a customer experience perspective. Such expectations of growth and innovation might change the way Yodlee operates as a data seller. 

In terms of how this acquisition affects Yodlee's data sales to the investment vertical, Daryl Smith, Head of research at Neudata, states "Yodlee’s data sales make up a significant portion of its overall revenue. As a result, we don't think their data sales will disappear entirely, but rather could be restructured. And while STG will certainly be looking to see growth, we don't think the acquisition will mean it will be expanding the number of third-party data vendors it partners with, in fact, quite the opposite is possible."

In this way, the acquisition may result in a more focused model of who Yodlee works with as its channel partners.

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