Broadridge Spends EUR 2 Billion on Itiviti
Posted by Colin Lambert. Last updated: March 29, 2021
Broadridge Financial Solutions has agreed to acquire trading and connectivity firm Itiviti for EUR 2.1 billion.
Itiviti claims to serve 24 of the largest 25 global investment banks and over 2,000 brokers, trading firms and and asset managers. The firms say that its focus on front-office trade order and execution management systems, FIX connectivity and network offerings, makes it complementary to Broadridge’s post-trade product suite and other capital markets capabilities.
The deal is expected to drive “significant value to clients by enabling them to streamline their front-to-back technology stacks, increasing efficiencies, reducing risk and optimising balance sheet utilisation across equities, fixed income, exchange-traded derivatives, and other asset classes”, the firms add.
In addition, they say that Itiviti’s presence in APAC and EMEA will significantly expand Broadridge’s revenues outside of North America and enhance its international footprint.
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 .
“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,” says Tim Gokey, Broadridge’s CEO. “Itiviti’s well-developed footprint in APAC and EMEA will increase our scale outside North America and strengthen our ability to serve our global clients.
Mackay adds, “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.”
The acquisition is subject to customary closing conditions and regulatory approval and is expected to close in the fourth quarter of Fiscal Year 2021.