New York based provider of investor communications Broadridge Financial Solutions Inc. (NYSE: BR) has just announced that it has acquired TwoFour Systems LLC, a provider of real-time foreign exchange solutions for banks and broker-dealers. Broadridge says the deal was made to address the rising demand for advanced FX technology among financial institutions. The transaction was reportedly completed December 30, 2014 and the terms were not disclosed.
“This acquisition advances our strategy to deliver powerful multi-asset class solutions to our clients globally,” said Broadridge President and Chief Executive Officer Richard J. Daly. “It is one of the latest developments in our ongoing tuck-in acquisition strategy, which continues to bring innovative technologies to our clients and strong internal rates of return to Broadridge.”
TwoFour’s technology provides “componentized” front-to-back office integration with straight-through-processing for FX, exchange-traded futures and options, metals, interest rate derivatives and money market instruments. Its cash management solution provides intra-day real-time aggregation and reporting of balances and cash flows with detailed global position views for single and multi-entity institutions.
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Broadridge says it is integrating the technology with its reconciliations and matching technologies to create a solution that supports an extensive range of cash and liquidity processes. TwoFour Systems will be branded Broadridge FX and Liquidity Solutions, operating within Broadridge’s Global Technology and Operations division.
“Financial institutions are looking to capitalize on growth in the foreign exchange market, as emerging markets mature and international currencies become more important,” said Tom Carey, president of Global Technology and Operations International, Broadridge. “TwoFour’s technology will enhance Broadridge’s ability to provide solutions to its clients within a critical asset class, enabling banks, payment companies and broker-dealers to expand their offerings and revenue streams. We are delighted to have these solutions, experienced management, and highly skilled people enhancing our overall solution capabilities.”
This acquisition is a natural progression for the two sides after they already embarked on a strategic partnership in November, 2013 to offer a combined solution. The previous deal seemed to improve operational efficiencies enough for Broadridge to now decide to officially cement its synergy with TwoFour.
“TwoFour’s technology, market strategy and high-touch, client-centric approach directly align with Broadridge’s mission to help financial institutions mutualize costs and increase efficiencies, and we are thrilled to become part of the Broadridge family,” said Steve Davis, general manager of Broadridge FX and Liquidity Solutions and former CEO of TwoFour Holdings. “As part of Broadridge we are better-positioned than ever to enable banks, payment companies and broker-dealers around the world to use this flexible and dynamic offering to capitalize on the opportunities in the foreign exchange markets.”