This financial company beat analysts’ earnings by $0.03 last quarter.
Broadridge Financial Solutions, Inc. (BR)
From Dividend Advisor
Broadridge Financial Solutions Inc. serves the investment industry in three main areas: investor communications, securities processing, and transaction clearing.
Broadridge last raised your quarterly dividend by 6.5% with the October 2020 payment, to $0.575 a share from $0.54.
The company is now buying Itiviti Holding AB, a leading provider of trading and connectivity technology to the capital markets industry. Broadridge will pay $2.5 billion in cash to buy Itiviti from Nordic Capital.
Headquartered in Stockholm and with offices in 16 countries, Itiviti serves 24 of the top 25 global investment banks and over 2,000 leading brokers, trading firms and asset managers across 50 countries.
Itiviti’s services aim to let financial institutions consolidate their trading infrastructure across all classes of securities and at the same time cut costs. It also lets them keep up with evolving regulatory demands.
The acquisition should be a good fit for Broadridge. It will add Itiviti’s front-office trade order and execution management systems to its own industry-leading post-trade product offerings and other capital market capabilities.
In addition, Itiviti’s strong presence in the Asia-Pacific region, as well as Europe, the Middle East, and Africa, will significantly expand Broadridge’s revenues outside of North America and enhance its international footprint in key markets. Itiviti’s blue-chip client base should also provide significant cross-selling opportunities for Broadridge and further enhance the company’s long-term growth.
Broadridge has increased its average annual dividend by 13.9% over the past 5 years. Its TSI Dividend Sustainability Rating is Above Average.
Patrick McKeough, Dividend Advisor, tsinetwork.ca, 888-292-0296, April 9, 2021