U.S. technology provider for financial institutions (FIs) Broadridge acquires Sweden-based electronic trading platform Itiviti for € 2.14 billion ($ 2.44 billion), through his press release. Broadridge offers a wide range of technology solutions for FIs, including multi-channel communication tools, predictive market data analytics and streamlined daily trading for more than $ 10,000 billion in securities worldwide. Itiviti is a capital markets technology provider that helps over 2,000 FIs consolidate their trading infrastructure for cost savings.
The acquisition will expand Broadridge’s technological capabilities in capital markets and expand its international presence. Itiviti’s focus on front-office order management and trade execution systems complements Broadridge’s existing capital markets capabilities, such as its post-trade suite of products. The combined solutions will therefore further streamline front-to-back technology stacks and FI trading lifecycles. This will enhance Broadridge’s value proposition among FIs, which it can then leverage to cross-sell its other products, such as its recently launched Wealth Lending Network. Marlet. Finally, Itiviti has a strong presence in Asia-Pacific and EMEA, allowing Broadridge to reach new growth markets outside the United States.
Wealthechs consolidate to better serve FIs as FIs seek more comprehensive services to digitize their operations.
- The pandemic has exposed the low levels of digital maturity of FIs. Improving digital capabilities will be essential for wealth managers to avoid customer churn in 2021, through a Capgemini report. Last year, investors transferred their money between different companies to 3.5 times the pace of the previous three years, in part to seek the best digital services: 89% Financial advisers have reported that technological tools have become more critical amid stay-at-home orders.
- More leading technology companies will acquire additional vendors to deliver fully end-to-end solutions to FIs. Such acquisitions can quickly transform wealth technologies into one-stop shops for FIs, saving them from having to call on multiple suppliers. Broadridge deal follows tech giant NCA completes its own purchase of fintech software provider Avaloq in December. More acquisitions are likely to take place this year to capture popular wealth technologies and better serve FIs, starting with the primary acquisition candidate Infusion, which raised $ 150 million at a valuation of $ 1.5 billion in January.