Broadridge Financial Solutions, Inc. (BR) announced Monday that it has signed a definitive agreement to acquire Itiviti Holding AB, a provider of trading and connectivity technology to the capital markets industry, from Nordic Capital in an all-cash deal valued at 2.143 billion euros or around $2.5 billion.
The acquisition is expected to close in the fourth quarter of 2021, subject to customary closing conditions and regulatory approval.
The acquisition of Itiviti is expected to be accretive to Adjusted EPS in the first full year after closing and generate attractive financial returns for Broadridge’s shareholders.
In addition, the acquisition is expected to contribute 2.5-3 points to Broadridge’s recurring revenue compound annual growth rate or CAGR.
The company expects the incremental revenue and earnings growth positions it well to deliver at the higher end of three-year growth objectives for recurring revenue and Adjusted EPS growth.
Upon closing, Itiviti will become part of Broadridge’s Global Technology and Operations segment and its senior management team, led by CEO Rob Mackay, will remain with the company to drive future growth.
Itiviti has offices in 16 countries and serves 24 of the top 25 global investment banks. Itiviti generated recurring revenues of approximately 210 million euros in calendar year 2020.
Further, Itiviti’s strong presence in APAC and EMEA will significantly expand Broadridge’s revenues outside of North America and enhance Broadridge’s international footprint in key markets.
Broadridge is financing the acquisition through a new $2.55 billion term credit agreement.
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