Broadridge Financial Solutions, an American-based investment banking company, is set to acquire Itiviti, a provider of trading and connectivity technology to the capital markets industry, in an all-cash transaction valued at €2.143 billion (approximately $2.5 billion) from Nordic Capital.
Broadridge said in a statement that Itiviti’s strong presence in APAC and EMEA will significantly expand Broadridge’s revenues outside of North America and enhance Broadridge’s international footprint in key markets.
Itiviti’s blue-chip client base should also provide significant cross-sell opportunities across Broadridge’s product portfolio, further enhancing its long-term growth.
Upon closing, Itiviti will become part of Broadridge’s Global Technology and Operations segment and its senior management team, led by CEO Rob Mackay, will remain with the company to drive future growth.
The acquisition is subject to customary closing conditions and regulatory approval and is expected to close in the fourth quarter of 2021.
“By extending our capabilities into the front office and deepening our multi-asset class solutions, Itiviti significantly strengthens our Capital Markets franchise and better enables Broadridge to help financial institutions adapt to a rapidly evolving marketplace.
The acquisition is also expected to deliver value to our shareholders in the form of stronger recurring revenue growth, higher margins and higher Adjusted EPS. This incremental revenue and earnings growth positions us well to deliver at the higher end of our three-year growth objectives for recurring revenue and Adjusted EPS growth,”
said Tim Gokey, Broadridge’s Chief Executive Officer.
“Joining Broadridge represents an exciting next chapter for our business and team by creating a leading front-to-back capital markets technology and operations provider.
The combination of our technology, solutions and people will unlock significant value for our clients and drive long-term growth for our combined business.”
said Rob Mackay, CEO of Itiviti.
Featured image credit: edited from Unsplash
