LAKE SUCCESS, New York, September 8, 2011 – To significantly expand its services to buy-side clients, Broadridge Financial Solutions (NYSE:BR) today announced the acquisition of Paladyne Systems for approximately $76.5 million in consideration subject to various adjustments. Paladyne is a rapidly growing provider of a market-leading set of solutions to enable global, multi-asset class investment managers and service providers to work more effectively, minimize the challenges of managing multiple prime broker relationships, decrease the cost of integrating and running disparate solutions, and improve consistency in data and reporting.
“The acquisition of Paladyne will significantly expand Broadridge’s position as a service provider to buy-side clients,” stated Richard J. Daly, Chief Executive Officer, Broadridge. “Buy-side firms purchase nearly 40% of capital markets technology and services and represent a segment of virtually untapped opportunity for Broadridge. Paladyne will serve as the foundation for the expansion of Broadridge’s buy-side offering, enabling us to bring Paladyne’s unique solutions to hedge funds, our existing prime brokerage clients, asset managers, hedge fund administrators and other asset servicers.”
“Broadridge has exceptional client loyalty and an outstanding reputation for service, dependability, and cost effectiveness. Broadridge’s extensive reach in the global financial services community and its global sales and distribution capabilities will enable Paladyne to expand significantly into new and existing market segments,” said Sameer Shalaby, Chief Executive Officer, Paladyne Systems. “Broadridge’s proven sell-side solutions and client-focused services in combination with Paladyne’s innovative buy-side technology creates one of the most comprehensive technology and services offerings within the financial services industry.”
Charlie Marchesani, President, Securities Processing Solutions, Broadridge, commented, “We believe that Broadridge is uniquely positioned to offer technology and outsourcing services to the hedge fund, asset management, fund administration, prime brokerage and custodial industry segments. The trust Broadridge has earned with our sell-side relationships and the neutral and independent role we hold in the industry will position us for success on the buy-side.” He added, “We proudly welcome the talented, visionary team at Paladyne. Working with Paladyne, we look forward to continuing to provide innovative solutions to existing and future clients on both the buy- and sell-sides. Paladyne Systems will operate as a core business within Broadridge’s Securities Processing Solutions division.”
Paladyne’s integrated front-, middle- and back-office platform provides hedge funds, asset managers, fund administrators and prime brokers with mission critical applications to streamline and manage their business. Paladyne’s platform includes multi-asset class order and portfolio management tools; reference data, pricing and valuation management applications; and data warehousing for firm-wide data aggregation and reporting. Paladyne combines its technology with a fully-hosted, managed IT platform.
Raymond James & Associates acted as exclusive financial advisor to Broadridge in this transaction. Credit Suisse provided strategic advice to Paladyne in connection with the transaction.
Broadridge Financial Solutions, Inc. (NYSE:BR) is the leading provider of investor communications and technology-driven solutions for broker-dealers, banks, mutual funds and other corporations. Broadridge’s investor and customer communications, securities processing and managed services solutions help clients reduce their capital investments in operations infrastructure, allowing them to increase their focus on core business activities. With over 50 years of experience, Broadridge's infrastructure underpins proxy voting services for over 90% of public companies and mutual funds in North America and processes on average $5 trillion in equity and fixed income trades per day. Broadridge employs approximately 10,000 associates in 14 countries.
For more information about Broadridge, please visit www.broadridge.com.
About Paladyne Systems
Paladyne Systems, a Broadridge Company (NYSE:BR), is the leading provider of next generation investment management solutions. Paladyne offers its integrated front-, middle- and back-office platform, known as the Paladyne Suite, to hedge funds, asset managers, fund administrators and prime brokers. The modular Paladyne Suite includes order management, portfolio management, reference data management, data warehouse and custom reporting and reconciliation, and is complemented by the Paladyne Network, an integrated network of leading 3rd-party software and market data firms. The solution can be delivered onsite or via Paladyne's industry-leading application service provider solution, - SSAE 16-certified Paladyne ASP. Paladyne was established in 2005 and acquired by Broadridge in 2011 and now serves over 225 clients worldwide. The firm has approximately 180 employees and is headquartered in New York, with regional offices in New Jersey, London, Russia and Hong Kong.
For more information, please visit paladyne.com.
This press release and other written or oral statements made from time to time by representatives of Broadridge may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not historical in nature, such as our fiscal year 2011 financial guidance, and which may be identified by the use of words like “expects,” “assumes,” “projects,” “anticipates,” “estimates,” “we believe,” “could be” and other words of similar meaning, are forward-looking statements. These statements are based on management’s expectations and assumptions and are subject to risks and uncertainties that may cause actual results to differ materially from those expressed. These risks and uncertainties include those risk factors discussed in Part I, “Item 1A. Risk Factors” of our Annual Report on Form 10-K for the fiscal year ended June 30, 2010 (the “2010 Annual Report”), as they may be updated in any future reports filed with the Securities and Exchange Commission. Any forward-looking statements are qualified in their entirety by reference to the factors discussed in the 2010 Annual Report. These risks include: the success of Broadridge in retaining and selling additional services to its existing clients and in obtaining new clients; the pricing of Broadridge’s products and services; changes in laws and regulations affecting the investor communication services provided by Broadridge; declines in participation and activity in the securities markets; overall market and economic conditions and their impact on the securities markets; any material breach of Broadridge security affecting its clients’ customer information; the failure of Broadridge’s outsourced data center services provider to provide the anticipated levels of service; any significant slowdown or failure of Broadridge’s systems or error in the performance of Broadridge’s services; Broadridge’s failure to keep pace with changes in technology and demands of its clients; Broadridge’s ability to attract and retain key personnel; the impact of new acquisitions and divestitures; and competitive conditions. Broadridge disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.
Broadridge Financial Solutions, Inc.