72° Good Afternoon
72° Good Afternoon

Broadridge moves into foreign exchange arena with purchase of TwoFour Systems

Richard J. Daly is the chief executive of

Richard J. Daly is the chief executive of Lake Success-based Broadridge Financial Solutions, in his Manhattan office on Jan. 22, 2009. Credit: Bloomberg News / Daniel Acker

Broadridge Financial Solutions Inc. announced Monday it has purchased a small technology company for an undisclosed amount.

Lake Success-based Broadridge said it acquired TwoFour Systems LLC last Tuesday. TwoFour helps banks and brokers process foreign currency transactions and manage their cash.

Executives and about 50 workers from the White Plains company will join the Broadridge payroll, said Richard J. Daly, founder and CEO of Broadridge. TwoFour's name will be changed to Broadridge FX and Liquidity Solutions, he said.

TwoFour is one of 10 acquisitions by Broadridge to add technologies and revenue since 2007. Daly said the TwoFour deal represents "our first significant move" in the foreign exchange area.

Broadridge is best known for processing shareholder documents, such as proxy statements and annual reports, for public companies, and financial transactions for banks and investment houses. The company employs about 1,500 people at factories in Edgewood.

The TwoFour purchase was small compared with Broadridge's $2.6 billion in revenue in the fiscal year ended June 30, Daly said. "It is not a material transaction," he said, meaning it won't significantly impact Broadridge's finances.

The companies began working together in November 2013, but at the time, Daly said, "TwoFour wasn't looking to be acquired." Over the past year "we found a lot of synergies -- in terms of the market opportunity and our cultures -- and felt it would add value for our clients to acquire the technology."

Steve Davis, former chief executive of TwoFour, said that "as part of Broadridge we are better positioned than ever to enable banks, payment companies and broker-dealers around the world . . . to capitalize on the opportunities in the foreign exchange markets."

The deal was announced before Monday's stock market opening. Broadridge shares were down 68 cents, or 1.49 percent, to $44.92 on the Nasdaq.

More news