(Reuters) - Private equity firm Hellman & Friedman said on Monday it agreed to acquire investment adviser Financial Engines Inc FNGN.O in an all-cash deal valued at about $3.02 billion.
Shares of the company rose as much 31 percent to trade near the offer price of $45 per share.
Hellman & Friedman said it would combine Financial Engines with Edelman Financial Services, a financial planning and investment management company, in which it owns a majority stake.
Financial Engines Chief Executive Officer Larry Raffone will lead the combined company.
The transaction is expected to close in the third quarter of 2018.
Sandler O’Neill was financial adviser to Financial Engines, while Wachtell, Lipton, Rosen & Katz provided legal counsel.
J.P. Morgan, Barclays, Deutsche Bank and UBS Investment Bank were financial advisers to Hellman & Friedman. Simpson Thacher & Bartlett provided legal counsel to the PE firm.
Reporting By Aparajita Saxena in Bengaluru; Editing by Anil D'Silva