By Milana Vinn

(Reuters) -Private equity firm Bain Capital is nearing a deal to acquire Envestnet, a U.S. financial software vendor with a market value of about $3.5 billion, people familiar with the matter said on Monday.

If the negotiations conclude successfully, a deal with Bain could be announced as soon as this week and would value Envestnet at close to its current stock price, the sources said. Envestnet shares are hovering at around $63.

The sources requested anonymity because the matter is confidential. Envestnet and Bain did not immediately respond to requests for comment.

Envestnet provides technology tools to financial advisers and wealth managers. Its clients include more than 108,000 advisers, 16 of the top 20 U.S. banks, and several top wealth management and brokerage firms, according to its website.

Last year, Envestnet added three new directors to end a board challenge from activist investor Impactive Capital that had been pushing the company to improve its performance by cutting costs.

Envestnet is currently in a leadership transition. In January, CEO Bill Crager said he would step down from this role and continue with the company as a senior adviser starting in April.

The company previously explored a sale in 2022 after being approached by potential buyers. Reuters reported in April that Envestnet was again up for sale.

(Reporting by Milana Vinn in New YorkEditing by Greg Roumeliotis and Lisa Shumaker)