The wealth management technology provider has reached a deal to acquire Yodlee in a deal it believes represents a "quantum leap" in data accuracy and knowledge.

Envestnet, a provider of wealth management technology to financial advisors, is to acquire California-headquartered Yodlee, the cloud-based financial services platform, in a cash and stock transaction that gives the latter firm an enterprise value of $590 million.

The transaction is valued at $18.88 per share, or around $660 million on a fully-diluted equity value basis - a premium of about 50 per cent to Yodlee’s closing price on Friday, The New York Times reported.

“Financial institutions, advisors and investment managers using the Envestnet platform will be able to provide a more interactive and informative digital advice experience for clients, powered by an expanding array of data mining and predictive analytical tools,” said Bill Crager, president of Envestnet.

Yodlee, which specializes in data aggregation with 14,000 sources, generated revenues of $98.6 million for the 12 months ended June 30, 2015.

The transaction is expected to close in the fourth quarter of 2015 or in the first quarter of 2016, subject to customary closing conditions, as well as approval by Yodlee stockholders.

Envestnet and Yodlee will continue to operate separately until the transaction closes.