Broadridge Acquires Investigo

By David Sims

TMCnet Contributing Editor

 

Broadridge Financial Solutions, a vendor of technology-based outsourcing to the financial services industry, says it’s completed the acquisition of Investigo Corporation.

 

The acquisition “increases Broadridge’s commitment to enterprise data management and compliance,” Broadridge officials say, noting that it “complements a number of Broadridge initiatives targeted to support the wealth management strategies of its customers.”

 

Technology spending for wealth management is one of the fastest growing expenses in the securities industry, according to Broadridge officials, who add that “both Investigo’s products and technologies can be used to add value” to the wealth management products Broadridge sells.

 

“Investigo’s product has proven to be readily scalable and is already making a difference for a number of large financial services firms,” said Richard J. Daly, chief executive officer of Broadridge Financial Solutions.

 

The Investigo product gives users financial services enterprise data consolidation from multiple sources, including clearing houses, custodians and back office systems, into a central repository, company officials say.

 

Investigo is “a great fit in our Securities Processing Solutions business,” Charlie Marchesani, president of Broadridge Securities Processing Solutions says, adding that their technology and “understanding of its applications will enable us to tailor better and deeper products.”

 

Scott Fergusson, co-founder of Investigo, will become vice president of Product Management and Development, according to the company.

 

Earlier this week Fitch rated Broadridge Financial Solutions, setting its issuer default rating at “BBB,” the senior unsecured revolving credit facility at “BBB” and the senior unsecured debt at “BBB.”

 

It put the rating outlook at “stable,” saying the ratings and outlook reflect Fitch’s expectations that Broadridge will “maintain its market leading share of the proxy distribution market which, combined with other investor communications products, should provide a stable base of cash flow.”

 

The rating firm also expects Broadridge to capture modest growth opportunities in its Securities Processing business over the next several years: “This growth could further be accelerated if the company is successful in achieving greater penetration of its outsourcing model.”