Broadridge to acquire capital markets firm Itiviti in $2.5bn deal
Broadridge has signed a $2.5 billion deal to acquire Swedish capital markets firm Itiviti Holding.
Itiviti is the latest in a line of Broadridge acquisitions
Broadridge is paying an all-cash transaction to buy the firm from current owner Nordic Capital.
Itiviti claims to serve 24 of the top 25 global investment banks. It says it works with more than 2,000 leading brokers, trading firms and asset managers.
Broadridge says the firm is “highly complementary” to its post-trade product suite, in part due to Itiviti’s focus on front office execution.
“Itiviti significantly strengthens our capital markets franchise,” says Tim Gokey, Broadridge CEO. He adds that the Swedish firm’s presence in Asian markets will also help his firm expand globally.
Itiviti generated recurring revenues of approximately €210 million in calendar year 2020. Gokey believes the acquisition will deliver value to Broadridge shareholders via stronger recurring revenues.
“Joining Broadridge represents an exciting next chapter for our business,” says Itiviti CEO Rob Mackay.
“The combination of our technology, solutions and people will unlock significant value for our clients and drive long-term growth for our combined business.”
Mackay continues to lead Itiviti as it becomes part of Broadridge’s global technology and operations division.
The acquisition is subject to regulatory approval. Broadridge expects the deal to close in Q4 2021.
Broadridge is one of the industry’s most active consolidators and has conducted several mergers and acquisitions in the past few years.
It confirmed the acquisition of reporting firm FundsLibrary and portfolio ClearStructure in 2020.
In 2019, it took over Northern Trust’s private equity distributed ledger system, securities firm Rockall, and a portion of regulatory technology firms PivotData and Sol Hedge.
In 2018 it bought up Dublin-based FundAssist and Israeli digital technology firm ActivePath.
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