Broadridge to Buy Trading Technology Provider Itiviti for $2.5 Billion

New York-listed Broadridge Financial Solutions (NYSE:BR) announced on Monday that it is acquiring trading and connectivity technology provider, Itiviti for €2.143 billion (around $2.5 billion). The two companies already signed a definitive agreement, and the transaction was made all in-cash.

The purchase will be made from Itiviti’s current owner, Nordic Capital. The deal is expected to be closed in the fourth quarter of the fiscal year 2021 after the customary closing conditions and regulatory approval.

Headquartered in Stockholm, Itiviti has a vast presence internationally. The announcement highlighted that 24 out of the top 25 investment banks are Itiviti’s clients. Additionally, the technologies provider is well-known in the brokerage industry with more than 2,000 brokers across 50 countries.

“The acquisition of Itiviti enhances Broadridge's position as a global Fintech leader,” Broadridge's Chief Executive, Tim Gokey said. “By extending our capabilities into the front office and deepening our Multi-Asset Multi-Asset Composed of varying asset classes, multi-asset is a blanket designation combining different classes such bonds, equities, cash equivalents, fixed income, and alternative investments.When compared to traditional balanced funds, multi-asset solutions differ because they target specific investment outcomes. This includes outcomes such as return above inflation as opposed to gauging performance against standardized benchmarks.Given the composition of multi-asset classes, they need to be dynamically Composed of varying asset classes, multi-asset is a blanket designation combining different classes such bonds, equities, cash equivalents, fixed income, and alternative investments.When compared to traditional balanced funds, multi-asset solutions differ because they target specific investment outcomes. This includes outcomes such as return above inflation as opposed to gauging performance against standardized benchmarks.Given the composition of multi-asset classes, they need to be dynamically Read this Term class solutions, Itiviti significantly strengthens our Capital Markets franchise and better enables Broadridge to help financial institutions adapt to a rapidly evolving marketplace.”

Expansion Plans Ahead

Broadridge is planning to expand its footprint outside North America with Itiviti’s presence in APAC and EMEA region.

Itiviti is known for its NYFIX network that offers OMS services to both Buy-Side Buy-Side The buy-side is comprised of firms in the financial industry that purchase securities and are accompanied by account investment managers, pension funds, and hedge funds.The buy-side is composed of those that buy and invest large sums of securities with the intention of generating a lucrative return or have their funds managed. The Buy-Side ExplainedIn terms of Wall Street, the buy-side includes investment institutions that purchase securities, stocks, or other financial instruments with the aim The buy-side is comprised of firms in the financial industry that purchase securities and are accompanied by account investment managers, pension funds, and hedge funds.The buy-side is composed of those that buy and invest large sums of securities with the intention of generating a lucrative return or have their funds managed. The Buy-Side ExplainedIn terms of Wall Street, the buy-side includes investment institutions that purchase securities, stocks, or other financial instruments with the aim Read this Term and sell-side trading clients. The company’s subscription-based business model was a hit as it generated €210 million last year in recurring revenues.

“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,” Itiviti CEO, Rob Mackay added. “The combination of our technology, solutions, and people will unlock significant value for our clients and drive long-term growth for our combined business.”

After the acquisition, Itiviti will be a part of Broadridge's Global Technology and Operations segment, and the new owner will retain the technology provider’s current management.