Broadridge Financial Solutions Inc. is increasing its presence in Canada by buying a Toronto software company for $300 million, officials said.
Broadridge, which is headquartered in Lake Success, has acquired RPM Technologies, whose software is used in more than 15 million investment accounts in Canada. The company’s customers include banks, credit unions, insurers and stock brokerages.
“The addition of RPM Technologies broadens and deepens our wealth management product offering in Canada,” said Tom Carey, global technology and operations president at Broadridge.
RPM has 244 employees, a Broadridge spokeswoman said Wednesday, and it is expected to increase Broadridge’s revenue by $40 million to $50 million in the year ending June 2020.
Broadridge delivers billions of documents to shareholders each year and processes trillions of dollars in stock trades each day. It has more than 10,000 employees, including 2,300 on Long Island, many of them at factories in Edgewood.
RPM CEO Dave Poppleton said Broadridge already operates north of the U.S.-Canada border and its size makes it "the best future partner to extend RPM’s growth. With our combined technology and innovation capabilities, clients will gain deep product expansion opportunities, superior digital channel capabilities and seamless enterprise solutions.”
Broadridge reported a profit of $428 million for the year ended June 30, 2018, a gain of 31 percent from 2017. Revenue totaled $4.3 billion in 2018.
Poppleton and other RPM executives are expected to join Broadridge's existing management team in Canada.
RPM was sold by investor Bayshore Capital Inc., and Broadridge officials said prior to the sale closing there would be “an intercompany reorganization by RPM.”
The announcement came Tuesday before the stock market opened. Broadridge shares on Tuesday closed up 81 cents, or less than 1 percent, to $123.89 on the New York Stock Exchange. On Wednesday, the stock closed at $123.17 per share.