Orion Advisor Solutions is buying Redtail Technology, bringing together two technology firms whose software and services are widely used by financial advisors.
The deal is the latest for Orion, which provides technology, portfolio management software, and asset management services to more than 2,300 wealth management firms. Orionās advisor services include billing, reporting, portfolio analysis, and more. The Red tail acquisition also puts Orion in more direct competition with Redtailās rivals, such as
Envestnet
and Wealthbox.
Orion CEO Eric Clarke and Redtail CEO Brain McLaughlin
Photo Illustration by Barron's Advisor; Courtesy of Orion and Redtail
Both Orion and Redtail are popular with independent financial advisors.
Redtailās client relationship management software will complement Orionās other services and ultimately help advisors grow their businesses, according to Orion Chief Operating Officer Ryan Beach. āIt will drive a lot of value for advisors,ā he says.
Orion CEO Eric Clarke had been trying to ink a deal for some time, according to Redtail co-founder and CEO Brian McLaughlin, who jokingly says he has ignored Clarkeās text messages for years.
āIāve always said no previously, but I was at a crossroads strategically,ā McLaughlin says. āI have a vision of taking this to the next level. Redtail has been doing great, but I want to get more data, more chances to innovate, and to elevate Redtail.ā
Once McLaughlin and Redtail made a decision to explore a deal, talks proceeded quickly, according to executives from both firms. The pairing is a āperfect harmony,ā McLaughlin says.
The two firms previously worked on other projects together, and there are existing integrations between their software services. About 650 wealth management firms are customers of both Redtail and Orion, according to Beach.
Ryan Beach, Orion's Chief Operating Officer
Photo Illustration by Barron's Advisor; Courtesy of Orion
The firms did not disclose terms of the deal, which is expected to close in the second quarter of 2022. Integrating the firmsā technology should be quick because of their experience working with one another, Beach says.Ā
āThere will be no disruption to the current service model for either firmsā customers,ā he says.
After the deal closes, Redtailās McLaughlin will become Orionās president of CRM and report to Orionās CEO, the firms said. McLaughlin will also join Orionās executive team and board of directors.Ā
Redtailās employees will continue working out of their existing locations and Redtail will become a brand entity of Orion, the firms said.
Last year, Orion acquired HiddenLevers, which provides portfolio analysis software for financial advisors. Private-equity firms TA Associates and Genstar Capital own stakes in Orion.
Write to Andrew Welsch at andrew.welsch@barrons.com
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