Broadridge Financial Agrees to Acquire Business Unit from DST for $410m Cash
- The acquisition of NACC will help bolster Broadridge's communications business.
On the heels of the latest acquisition announced by Broadridge Financial Solutions Inc. yesterday, 4sight Financial Software Limited, the company has since unveiled yet another purchase, agreeing to acquire DST’s North American Customer Communications (NACC) business for $410 million in cash, according to an official corporate statement.
With $1.1 billion in total revenue for its fiscal year 2015, NACC is the largest transactional printer in North America and a business of DST Systems Inc. – a company listed on the NYSE under ticker DST – from which Broadridge agreed to purchase the business based on a definitive acquisition agreement.
The combined entity will create the industry’s largest distributor of critical client content across North America.
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NACC employs over 2300 associates across its four offices in the U.S. and Canada and caters to a number of financial services companies – which could help unlock synergies or cross-selling possibilities for the new acquirer.
As part of the deal, Mike Abbaei, Head of DST’s Customer Communications business, will be joining Broadridge as part of this transaction which is subject to customary closing conditions.
Expanding Regional Footprint
Mike Abbaei
Source: LinkedIn
Mr. Abbaei said: “The management team and I are delighted to join Broadridge, a trusted industry leader in providing critical customer communications. The combined entity will create the industry’s largest distributor of critical client content across North America."
"We share the same focus on client service and are excited by the differentiated solutions across all channels that this acquisition enables. The integration of these capabilities will align our clients to benefit from the industry’s best technologies, quality and footprint. It also strategically positions our clients to benefit from the evolution of consumer preferences.”
Provided that the deal closes, NACC’s business will become part of Broadridge’s Investor Communication Solutions business, and will expand Broadridge’s position as a leading provider of multi-channel communications - including in print communications and leading offerings for digital communications.
Natural business extension
Richard J. Daly, President and Chief Executive Officer of Broadridge, said in a statement: "The addition of NACC, an industry leader, is a natural extension of our communications business and will provide immediate benefits for our clients through enhanced production capabilities and expedited delivery times."
Mr. Daly added: "This acquisition is consistent with our strategy and adds to our bottom line immediately. It also positions us to be a communications leader across a number of market verticals and a provider of a unique suite of multi-channel communications solutions, empowering Broadridge to accelerate the industry’s conversion to digital communications and meet the diverse preferences of our clients’ customers."
The transaction is expected to be immediately accretive to GAAP and adjusted earnings. Shares of Broadridge Financial under ticker BR on the NYSE closed at nearly 1.8% higher at $64.28 per share during Tuesday's session in NY, and shares of DST also closed higher by 1% around time of the news.
On the heels of the latest acquisition announced by Broadridge Financial Solutions Inc. yesterday, 4sight Financial Software Limited, the company has since unveiled yet another purchase, agreeing to acquire DST’s North American Customer Communications (NACC) business for $410 million in cash, according to an official corporate statement.
With $1.1 billion in total revenue for its fiscal year 2015, NACC is the largest transactional printer in North America and a business of DST Systems Inc. – a company listed on the NYSE under ticker DST – from which Broadridge agreed to purchase the business based on a definitive acquisition agreement.
The combined entity will create the industry’s largest distributor of critical client content across North America.
The new world of Online Trading Online Trading Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Read this Term, Fintech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term and marketing – register now for the Finance Magnates Tel Aviv Conference, June 29th 2016
NACC employs over 2300 associates across its four offices in the U.S. and Canada and caters to a number of financial services companies – which could help unlock synergies or cross-selling possibilities for the new acquirer.
As part of the deal, Mike Abbaei, Head of DST’s Customer Communications business, will be joining Broadridge as part of this transaction which is subject to customary closing conditions.
Expanding Regional Footprint
Mike Abbaei
Source: LinkedIn
Mr. Abbaei said: “The management team and I are delighted to join Broadridge, a trusted industry leader in providing critical customer communications. The combined entity will create the industry’s largest distributor of critical client content across North America."
"We share the same focus on client service and are excited by the differentiated solutions across all channels that this acquisition enables. The integration of these capabilities will align our clients to benefit from the industry’s best technologies, quality and footprint. It also strategically positions our clients to benefit from the evolution of consumer preferences.”
Provided that the deal closes, NACC’s business will become part of Broadridge’s Investor Communication Solutions business, and will expand Broadridge’s position as a leading provider of multi-channel communications - including in print communications and leading offerings for digital communications.
Natural business extension
Richard J. Daly, President and Chief Executive Officer of Broadridge, said in a statement: "The addition of NACC, an industry leader, is a natural extension of our communications business and will provide immediate benefits for our clients through enhanced production capabilities and expedited delivery times."
Mr. Daly added: "This acquisition is consistent with our strategy and adds to our bottom line immediately. It also positions us to be a communications leader across a number of market verticals and a provider of a unique suite of multi-channel communications solutions, empowering Broadridge to accelerate the industry’s conversion to digital communications and meet the diverse preferences of our clients’ customers."
The transaction is expected to be immediately accretive to GAAP and adjusted earnings. Shares of Broadridge Financial under ticker BR on the NYSE closed at nearly 1.8% higher at $64.28 per share during Tuesday's session in NY, and shares of DST also closed higher by 1% around time of the news.