67° Good Afternoon
67° Good Afternoon

Broadridge Financial in two purchases for more than $410M

Broadridge Financial Solutions, a Lake Success-based distributor of

Broadridge Financial Solutions, a Lake Success-based distributor of annual reports and other investor documents, announced two acquisitions on Tuesday, June 14, 2016. Credit: Newsday / Alejandra Villa

Broadridge Financial Solutions Inc. announced two acquisitions on Tuesday — valued at more than $410 million — that will expand its services to public companies and investment banks.

In the first acquisition, Broadridge said it would purchase the North American Customer Communications division of DST Systems Inc. for $410 million in cash. The deal is expected to close next month.

Broadridge, headquartered in Lake Success, distributes annual reports, proxy statements and other investor documents to shareholders. Kansas City, Missouri-based DST is a public company providing business data services to the financial services and health care industries.

The acquisition brings to Broadridge, it said, “the largest transactional printer in the United States and Canada” with four factories and more than 2,300 workers. The DRT unit prints billing statements, invoices, 401(k) reports, medical statements and other forms sent to consumers.

The division generated revenue of $1.1 billion last year, or about 40 percent of DRT’s sales.

Broadridge CEO Richard J. Daly said Tuesday the combination would “create North America’s premier customer communications technology platform.” Broadridge will now be able to reach more than 75 percent of shareholders’ mailboxes in the United States and Canada.

“This acquisition is consistent with our strategy and adds to our bottom line immediately,” he said.

DST executive Mike Abbaei said, “The combined entity will create the industry’s largest distributor [of investor documents] across North America.” He will be joining Broadridge.

Broadridge, which maintains a large printing and processing center in Edgewood, has been acquiring businesses for the past few years, but the DST transaction is by far the largest. Broadridge employs 7,400 people, including about 2,000 locally.

Separately, Broadridge announced yesterday a second acquisition, of 4sight Financial Software Ltd., for an undisclosed amount.

4sight sells systems for securities finance and collateral management to banks, stock brokerages and other financial institutions.

The Edinburgh, Scotland-based company was started in 2003 and has 86 employees, a Broadridge spokeswoman said.

Broadridge shares closed up $1.13, or nearly 2 percent, to $64.28 on the New York Stock Exchange Tuesday.

More news