By agreeing to buy Just Invest, a wealth management technology provider based in Oakland, Calif., Vanguard has made the first acquisition in its 46-year history, writes Jeff Blumenthal for the Philadelphia Business Journal.

Financial terms of the deal remain undisclosed. The company expects a fourth-quarter close of the sale.

In a press release, Vanguard highlighted a Just Invest product called Kaleidoscope. The customizable, direct-indexing software program uses large-scale data analysis and quantitative algorithms and risk modeling to offer portfolio and tax management. The capability allows investors and advisors to discuss values and goals with personalized direct indexing. It also produces reports that show both the financial and the environmental, social, and governance (ESG) impact of investments.

“Technology-driven solutions such as direct indexing continue to reshape our industry, driving better investment outcomes and lowering costs for clients,” said Vanguard CEO Tim Buckley. “Wise investments in technology are an important equalizer, enabling us to democratize valuable investment capabilities and products.”

Vanguard said that through the Just Invest deal, it will begin by offering its products and services to advisors. Then, over time, the company will work to serve a wider base of clients.

Read more about Vanguard in the Philadelphia Business Journal.