Broadridge buys firm that encourages shareholders to switch to digital documents

Broadridge Financial Solutions Inc. has purchased an Israeli startup that encourages shareholders to receive investor documents via email instead of postal mail, officials announced Tuesday.

The Lake Success-based distributor of proxy statements, annual reports and other documents to shareholders on behalf of public companies and banks said it bought ActivePath in Tel Aviv, Israel. The amount of the transaction was not disclosed.

ActivePath’s software is used by banks, stockbrokers, physicians and other businesses to create interactive emails for billing and investor communications. The company has 15 employees.-

“Despite consumers’ interest for all-things digital, many brands struggle to create a compelling digital experience and convert their customers from print communications,” said Doug DeSchutter, president of Broadridge’s customer communications division. “In ActivePath, we gain…a proven track record of innovation.”

ActivePath CEO Avi Weiss said it and Broadridge share a mission “to lead the transformation of communications” from print to digital. 

ActivePath was started in 2013 and is best known for software that makes customer bills and statements interactive on the internet. It's Broadridge's second acquistion of 2018.

Broadridge has been on a buying spree in recent years, making mainly what CEO Richard J. Daly has called "tuck-in acquisitions" of small companies.

Broadridge also is embarking on $126 million in renovations and equipment purchases for its factories in Edgewood, where 1,735 people work. Another 282 will be hired over the next five years.

Daly started the company in an East Northport bedroom in 1987. It now has more than 10,000 employees in 16 countries and yearly revenue of $4 billion.

On Tuesday, Broadridge shares closed down 66 cents, or less than 1 percent, to $107.34 on the New York Stock Exchange.