Investor services firm Broadridge is set to acquire front-office trading technology provider Itiviti in a €2.14 billion cash transaction.
The arrangement will see Broadridge extend further into the front-office and also expand its market share in Europe.
Itiviti, which is owned by private equity firm Nordic Capital, provides front-office trade order and execution management systems and has a number of asset managers and buy-side firms among its client base.
“By extending our capabilities into the front office and deepening our multi-asset class solutions, Itiviti significantly strengthens our capital markets franchise,” said Broadridge chief executive, Tim Gokey.
The deal is expected to close in the final quarter of 2021, after which Itiviti will become part of Broadridge’s global technology and operations division. Its senior management team, led by chief executive Rob Mackay, will remain in place.
The acquisition is another example of a tech specialist being bought by a larger servicer provider looking to broaden their offering to include not just back and middle-office processes like post-trade settlement and asset servicing but front-office functions like trading and data analytics.
The Itiviti purchase comes a year after Broadridge acquired FundsLibrary, a digital data platform for European asset managers, that has been rebranded as Broadridge Fund Communication Solutions.
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