Broadridge Acquires
Technology to Accelerate Proxy Blockchain Roadmap
ET| Source:Broadridge Financial Solutions Inc
LAKE SUCCESS, N.Y.,
Sept. 19, 2016 (GLOBE NEWSWIRE) -- 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.
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overall market and economic conditions and their impact on the securities
markets; Broadridge’s failure to keep pace with changes in technology and
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