LAKE SUCCESS, N.Y.--(BUSINESS WIRE)--
To significantly expand its services to buy-side clients,Broadridge
Financial Solutions (NYSE:BR) today announced the acquisition of
Paladyne Systems for approximately $76.5 million in consideration
subject to various adjustments. Paladyne is a rapidly growing provider
of a market-leading set of solutions to enable global, multi-asset class
investment managers and service providers to work more effectively,
minimize the challenges of managing multiple prime broker relationships,
decrease the cost of integrating and running disparate solutions, and
improve consistency in data and reporting.
“The acquisition of Paladyne will significantly expand Broadridge’s
position as a service provider to buy-side clients,” stated Richard J.
Daly, Chief Executive Officer, Broadridge. “Buy-side firms purchase
nearly 40% of capital markets technology and services and represent a
segment of virtually untapped opportunity for Broadridge. Paladyne will
serve as the foundation for the expansion of Broadridge’s buy-side
offering, enabling us to bring Paladyne’s unique solutions to hedge
funds, our existing prime brokerage clients, asset managers, hedge fund
administrators and other asset servicers.”
“Broadridge has exceptional client loyalty and an outstanding reputation
for service, dependability, and cost effectiveness. Broadridge’s
extensive reach in the global financial services community and its
global sales and distribution capabilities will enable Paladyne to
expand significantly into new and existing market segments,” said Sameer
Shalaby, Chief Executive Officer, Paladyne Systems. “Broadridge’s proven
sell-side solutions and client-focused services in combination with
Paladyne’s innovative buy-side technology creates one of the most
comprehensive technology and services offerings within the financial
services industry.”
Charlie Marchesani, President, Securities Processing Solutions,
Broadridge, commented, “We believe that Broadridge is uniquely
positioned to offer technology and outsourcing services to the hedge
fund, asset management, fund administration, prime brokerage and
custodial industry segments. The trust Broadridge has earned with our
sell-side relationships and the neutral and independent role we hold in
the industry will position us for success on the buy-side.” He added,
“We proudly welcome the talented, visionary team at Paladyne. Working
with Paladyne, we look forward to continuing to provide innovative
solutions to existing and future clients on both the buy- and
sell-sides. Paladyne Systems will operate as a core business within
Broadridge’s Securities Processing Solutions division.”
Paladyne’s integrated front-, middle- and back-office platform provides
hedge funds, asset managers, fund administrators and prime brokers with
mission critical applications to streamline and manage their business.
Paladyne’s platform includes multi-asset class order and portfolio
management tools; reference data, pricing and valuation management
applications; and data warehousing for firm-wide data aggregation and
reporting. Paladyne combines its technology with a fully-hosted, managed
IT platform.
Raymond James & Associates acted as exclusive financial advisor to
Broadridge in this transaction. Credit Suisse provided strategic advice
to Paladyne in connection with the transaction.
About Broadridge
Broadridge is a technology services company focused on global capital
markets. Broadridge is the market leader enabling secure and accurate
processing of information for communications and securities transactions
among issuers, investors and financial intermediaries. Broadridge builds
the infrastructure that underpins proxy services for over 90% of public
companies and mutual funds in North America; processes more than $4
trillion in fixed income and equity trades per day; and saves companies
billions annually through its technology solutions. For more information
about Broadridge, please visit www.broadridge.com.
About Paladyne Systems
Paladyne Systems, Inc. (www.paladyne.com),
is the leading provider of next generation investment management
solutions. Paladyne offers its integrated front-, middle- and
back-office platform, known as the Paladyne Suite™, to hedge funds,
asset managers, fund administrators and prime brokers. The modular
Paladyne Suite™ includes order management, portfolio management,
reference data management, data warehouse reporting and reconciliation
and is complemented by the Paladyne Network™, which comprises a select
group of preferred strategic partnerships with leading software and
market data firms. The solution can be delivered onsite or via
Paladyne's industry-leading application service provider solution,
Paladyne ASP™. Paladyne was established in 2005 and now serves over 150
clients worldwide. The firm has approximately 160 employees, and is
headquartered in New York, with regional offices in New Jersey, London,
Russia and Hong Kong.
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 like “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,
2011 (the “2011 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 2011 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 the investor communication services provided
by Broadridge; declines in participation and activity in the securities
markets; overall market and economic conditions and their impact on the
securities markets; any material breach of Broadridge security affecting
its clients’ customer information; the failure of Broadridge’s
outsourced data center services provider to provide the anticipated
levels of service; any significant slowdown or failure of Broadridge’s
systems or error in the performance of Broadridge’s services;
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.
Investors:
Broadridge Financial Solutions, Inc.
Rick
Rodick, 516-472-5474
Vice President, Investor Relations
or
Media:
The
Torrenzano Group for Broadridge
Ed Orgon, 212-681-1700, ext. 102
ed@torrenzano.com
or
Broadridge
Financial Solutions, Inc.
Linda Namias, 631-254-7711
linda.namias@broadridge.com
or
LJ
O’Neil & Associates for Paladyne
Lisa Jane O’Neil, 212-786-7629
or 917-361-8303
lisajane@ljoassociates.com
Source: Broadridge Financial Solutions