Broadridge Financial Solutions has signed a definitive agreement to acquire Itiviti, the trading and connectivity technology provider to the capital markets industry, in an all-cash transaction valued at €2.143 billion (approximately US$2.5 billion) from Nordic Capital.
“The acquisition of Itiviti enhances Broadridge’s position as a global Fintech leader,” said Tim Gokey, Broadridge’s chief executive officer. “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 is a technology service provider offering solutions that financial institutions use to consolidate their trading infrastructure, driving cost savings. With offices in 16 countries, Itiviti reports having 24 of the top 25 global investment banks as clients in addition to over 2,000 brokers, trading firms and asset managers across 50 countries.
Itiviti’s suite of Trading and Connect solutions offer tools to support connectivity and adaptivity to changing market dynamics and regulatory demands. The solutions and services offered help financial institutions to have the flexibility and functionality to serve different trading styles across asset classes.
Itiviti CEO, Rob Mackay stated, “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.”
With a focus on front-office trade order and execution management systems, FIX connectivity and network offerings, Itiviti is could prove to be complementary to Broadridge’s post-trade product suite and other capital markets capabilities.
This combination is expected by the firms to increase 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.
Together the firms had US$900 million in combined calendar 2020 revenues. Broadridge’s Capital Markets franchise expects it will now be able to help clients adapt to increasing electronification and algo-driven trading and to mutualise non-differentiating functions to reduce their total cost of ownership.
Itiviti generated recurring revenues of approximately €210 million in calendar year 2020. Its subscription-like revenue model delivers recurring revenues. 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 Fiscal Year 2021.
©Markets Media Europe, 2021
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