Broadridge Financial to buy unit of Thomson Reuters
Broadridge Financial Solutions chief executive Richard Daly at the National Press Club in Washington, D.C. on March 29, 2011. Credit: Sam Hurd
Broadridge Financial Solutions Inc. Thursday said it is expanding the services it provides to mutual fund companies by purchasing a unit of information giant Thomson Reuters Corp.
The Lake Success-based provider of investor communication services for public companies and transactions processor for Wall Street firms will buy Thomson Reuters' fiduciary services and competitive intelligence unit for an undisclosed amount.
Executives said the 40 affected employees would join the Broadridge payroll, which totals 6,700 including about 1,500 on Long Island. In addition to its headquarters in Nassau County, the company has large operations in Edgewood, where workers assemble and send proxy statements, annual reports and other financial reports to investors on behalf of most U.S. public companies.
This is Broadridge's fifth acquisition since Jan. 1, each designed to expand one of the company's divisions.
The Thomson Reuters unit will increase Broadridge's business with mutual funds and exchange traded funds. The unit provides information on fund activity by country and distribution channel, advisers, fees and expenses.
"The acquisition will reinforce Broadridge's position as one of the leading providers of data solutions and market intelligence for the mutual fund sector, and expand our footprint globally," said Richard J. Daly, Broadridge's chief executive.
"As regulatory pressures increase and new digital opportunities emerge, these solutions will help our clients mitigate risks, meet their fiduciary responsibilities and enhance sales," he said.
The transaction is expected to close by June 30.
Thomson Reuters' other holdings include the Reuters news service, Westlaw legal publications and Lipper financial data.
Broadridge's announcement came after the stock market open Thursday. The company's shares closed down 37 cents, or less than 1 percent, to $54.17 on the New York Stock Exchange. Thomson Reuters shares closed up 6 cents, also less than 1 percent, to $40.65.
