Envestnet has agreed to buy Placemark Holdings, a firm that develops unified managed account (UMA) programs and other portfolio management outsourcing products for banks, full-service broker-dealers and RIA firms, for $66 million in cash.

The deal is expected to close in the second half of 2014, and Placemark CEO Lee Chertavian will join Envestnet as group president of Envestnet | Placemark.

The acquisition bolsters Envestnet’s product and service offerings for investment advisors, says the Chicago, Ill.-based firm. Placemark’s portfolio overlay and tax optimization service combines multiple investment products into one account, delivering automated rebalancing and customization services that allow for more tailored investment solutions.

Initially, Envestnet will operate Placemark’s Web-based UMA technology platform in tandem with its platform. A full integration and consolidation is expected in 2016.

As of March 31, Placemark had approximately $14 billion in UMA assets, which would boost Envestnet to $24.7 billion in UMA assets, making it No. 5 on the list of top unified managed account providers in the industry, according to Cerulli rankings.

“This acquisition significantly expands Envestnet’s presence in the full-service broker-dealer channel, giving us added resources to serve a broad spectrum of wealth management needs, while delivering increased value to our shareholders,” said Jud Bergman, chairman and chief executive officer, Envestnet.