Broadridge Set to Acquire Itiviti in a All-Cash €2.143 Billion Transaction From Nordic Capital

 

U.S.-based fintech Broadridge Financial Solutions (NYSE:BR) announced on Monday it has signed a definitive agreement to acquire Itiviti Holding AB, 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.

According to Broadridge, Itiviti is a global capital markets technology service provider that is offering scalable solutions for financial institutions to consolidate their trading infrastructure, driving significant cost savings.

“With offices in 16 countries, Itiviti serves 24 of the top 25 global investment banks and over 2,000 leading brokers, trading firms and asset managers across 50 countries. Itiviti’s suite of Trading and Connect solutions offer comprehensive tools to support both connectivity and adaptivity to changing market dynamics and regulatory demands. The solutions and services offered provide financial institutions the flexibility and functionality to serve any trading style across asset classes.”

Itiviti notably generated recurring revenues of approximately €210 million in 2020.  Upon the acquisition’s 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. While sharing more details about the acquisition,  Tim Gokey, Broadridge CEO, stated:

“The acquisition of Itiviti enhances Broadridge’s position as a global Fintech leader. 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. 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.

Itiviti CEO, Rob Mackay, further commented:

“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.”

Broadridge then added that the acquisition is subject to customary closing conditions and regulatory approval and is expected to close in the fourth quarter of Fiscal Year 2021.

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