Broadridge Financial Solutions has announced that it has acquired technology assets of a financial consultant - Inveshare Inc., and has entered into an agreement to use these technology assets to develop blockchain applications for Broadridge’s proxy business.
According to the official release, the acquisition will accelerate the company’s ability in adapting to the blockchain technology capabilities to its proxy services. A perpetual license has been granted by Broadridge to Inveshare to the acquired technology assets. Inveshare will remain an independent provider of proxy communications services.
“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, 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,” Richard J. Daly, President and CEO of Broadridge said.
In order to acquire the technology assets, Broadridge will pay $95 million upfront and an additional deferred payment of $40 million upon delivery of the blockchain applications. The transaction is not expected to have a material impact on the company’s financial results.
Broadridge is the leading provider of investor communications and technology-driven solutions for broker-dealers, banks, mutual funds and corporate issuers globally. The company’s investor 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.
