Broadridge Acquires Technology to Accelerate Proxy Blockchain Roadmap
September 19 2016 - 4:01PM
Broadridge Financial Solutions, Inc. (NYSE:BR) announced today that
it has acquired technology assets of Inveshare, Inc. (“Inveshare”).
In connection with the transaction, Broadridge has entered into a
development agreement to use these technology assets to develop
blockchain applications for Broadridge’s proxy business. The
acquisition is expected to accelerate Broadridge’s ability to adapt
distributed ledger technology capabilities to its proxy services.
Broadridge granted Inveshare a perpetual license to the acquired
technology assets and Inveshare will remain an independent provider
of proxy communications services.
Richard J. Daly, President and Chief Executive Officer noted,
“Broadridge plays a critical role as a leader in proxy
communications services. We are committed to staying at the
forefront and bringing to market innovative new technologies and
products that enhance corporate governance and reduce costs for all
participants.”
“Integrating blockchain technology into the proxy process has
the potential to drive significant benefits for all participants,
including institutional and retail investors, corporate issuers,
mutual funds, regulators, and brokers by reducing complexity,
increasing security and raising transparency. While lacking the
extensive and critical functionality of Broadridge’s industry
leading platforms (e.g. ProxyEdge® and other voting reconciliation
and compliance tools), these technology assets provide Broadridge
with a dynamic architecture that should enable us to more rapidly
develop a streamlined distributed ledger platform to bring these
benefits to our clients over the next several years,” Mr. Daly
concluded.
Broadridge will pay $95 million upfront to acquire the existing
technology assets plus a deferred payment of $40 million on
delivery of the blockchain applications. The transaction is not
expected to have a material impact on Broadridge's financial
results.
About Broadridge
Broadridge Financial Solutions, Inc. (NYSE:BR) is the leading
provider of investor communications and technology-driven solutions
for banks, broker-dealers, mutual funds and corporate issuers.
Broadridge’s investor and customer communications, securities
processing and managed services solutions help clients reduce their
capital investments in operations infrastructure, allowing them to
increase their focus on core business activities. With over 50
years of experience, Broadridge’s infrastructure underpins proxy
voting services for over 90% of public companies and mutual funds
in North America, and processes on average over $5 trillion in
equity and fixed income trades per day. Broadridge employs
approximately 10,000 associates in 16 countries. For more
information about Broadridge, please visit www.broadridge.com.
Forward-Looking Statements
This press release and other written or oral statements made
from time to time by representatives of Broadridge may contain
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. Statements that are not
historical in nature, and which may be identified by the use of
words such as “expects,” “assumes,” “projects,” “anticipates,”
“estimates,” “we believe,” “could be” and other words of similar
meaning, are forward-looking statements. These statements are based
on management’s expectations and assumptions and are subject to
risks and uncertainties that may cause actual results to differ
materially from those expressed. These risks and uncertainties
include those risk factors discussed in Part I, “Item 1A. Risk
Factors” of our Annual Report on Form 10-K for the fiscal year
ended June 30, 2016 (the “2016 Annual Report”), as they may be
updated in any future reports filed with the Securities and
Exchange Commission. All forward-looking statements speak only as
of the date of this press release and are expressly qualified in
their entirety by reference to the factors discussed in the 2016
Annual Report.
These risks include: the success of Broadridge in
retaining and selling additional services to its existing clients
and in obtaining new clients; Broadridge’s reliance on a relatively
small number of clients, the continued financial health of those
clients, and the continued use by such clients of Broadridge’s
services with favorable pricing terms; changes in laws and
regulations affecting Broadridge’s clients or the services provided
by Broadridge; any material breach of Broadridge security affecting
its clients’ customer information; declines in participation and
activity in the securities markets; the failure of Broadridge’s
outsourced data center services provider to provide the anticipated
levels of service; a disaster or other significant slowdown or
failure of Broadridge’s systems or error in the performance of
Broadridge’s services; overall market and economic conditions and
their impact on the securities markets; Broadridge’s failure to
keep pace with changes in technology and demands of its clients;
Broadridge’s ability to attract and retain key personnel; the
impact of new acquisitions and divestitures; and competitive
conditions. Broadridge disclaims any obligation to update or revise
forward-looking statements that may be made to reflect events or
circumstances that arise after the date made or to reflect the
occurrence of unanticipated events, other than as required by
law.
Contact Information
Investors:
W. Edings Thibault
Head of Investor Relations
(516) 472-5129
Media:
Linda Namias
Senior Director, Corporate Communications
(631) 254-7711
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