Broadridge Financial Solutions Inc. will spend $ 2.5 billion to buy a Swedish company that facilitates trading of stocks, bonds and other investments, officials said.
Lake Success has signed a final agreement to purchase Itiviti Holdings AB in Stockholm from private equity fund Nordic Capital. The purchase price is just over half of Broadridge’s 2020 revenue of $ 4.5 billion.
The transaction is expected to close between April and June, according to people familiar with the matter. Broadridge is the second largest publicly traded company on Long Island.
The acquisition of Itiviti provides software for executing buy and sell orders on stock exchanges and other capital markets. Broadridge is already recording and creating reports on transactions.
“Itivity will significantly strengthen its capital market franchise and help financial institutions adapt to the rapidly evolving markets of Broadridge,” said Timothy C. Gorky, CEO of Broadridge, Monday. Said.
He said Itiviti’s presence in Asia, Africa, Europe and the Middle East complements Broadridge’s dominant position in North America.
Itiviti traces its roots to Orc Software, which was founded in 1989 to trade Swedish derivatives. Today, the company has offices in 16 countries and employs 1,000 people. Its clients include most top investment banks and over 2,000 equity brokers.
Rob Mackay, CEO of Itiviti, said “participating in Broadridge” will create “a leading front-to-back capital markets technology and investment provider.” He said he would stay after the deal was completed.
Itiviti, which generated about $ 250 million last year, will be part of Broadridge’s Global Technology and Operations division, which generated $ 200 million in revenue.
Broadridge has expanded its technology and operations divisions for several years with small acquisitions. Even with the addition of Itiviti, this division is still smaller than Investor Communications, which distributes mandates, annual reports, and other documents to shareholders on behalf of public companies and investment trusts.
The acquisition also expanded the communications unit, which operates several large processing facilities on Wedgwood’s Long Island. In 2016, Broadridge was DST Systems Inc. in Kansas City, Missouri. Paid $ 410 million to buy a competitor in North America’s Customer Communications Division.
The deal gives Broadridge access to more than 75% of the mailboxes of its US and Canadian shareholders, said Richard J. Daily, then CEO of Broadridge.
Broadridge shares closed at $ 157.31 on the New York Stock Exchange on Monday, up $ 3.87 (2.5%).
Broadridge has more than 12,000 employees in 17 countries, including 2,300 on Long Island.
LI Broadridge Acquires Swedish Software Company for $ 2.5 Billion
Source link LI Broadridge Acquires Swedish Software Company for $ 2.5 Billion