Broadridge Financial Solutions, Inc. (NYSE:BR), a global provider of technology-based outsourcing solutions to the financial services industry, has announced that it has acquired technology assets of Inveshare Inc. and entered into a development agreement to use these assets to develop blockchain applications for Broadridge’s proxy business.
Broadridge granted Inveshare a perpetual license to the acquired technology assets and Inveshare will remain an independent provider of proxy communications services.It will pay $95 million upfront to acquire the existing technology assets plus a deferred payment of $40 million on delivery of the blockchain applications. According to the firm, the transaction is not expected to have a material impact on Broadridge’s financial results.
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Richard J. Daly, Broadridge President and CEO, noted: “Broadridge plays a critical role as a leader in proxy communications services. We are committed to staying at the forefront and bringing to market innovative new technologies and products that enhance corporate governance and reduce costs for all participants.”
“Integrating blockchain technology into the proxy process has the potential to drive significant benefits for all participants, including institutional and retail investors, corporate issuers, mutual funds, regulators, and brokers by reducing complexity, increasing security and raising transparency. While lacking the extensive and critical functionality of Broadridge’s industry leading platforms, these technology assets provide Broadridge with a dynamic architecture that should enable us to more rapidly develop a streamlined distributed ledger platform to bring these benefits to our clients over the next several years,” Daly concluded.