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In a move to expand its global post-trade control capabilities, Broadridge Financial Solutions Inc. (BR - Free Report) recently acquired Message Automation Limited, a leading specialist provider of post-trade control solutions. However, financial terms of the deal have not been disclosed.
Founded in 2003, Message Automation helps in managing multiple trade processing challenges faced by its clients due to changes in or creation of new regulations and market practices across all asset classes in OTC, ETD and FI markets. The company’s long list of clients includes investment banks, regional banks and buy-side firms.
Therefore, the acquisition is believed to be highly important for Broadridge as it will strengthen its ability to transform its risk and compliance capabilities for complex asset classes.
It should be noted that financial institutions have been facing challenges from growing regulatory compliances, including the pressure of implementing MiFID II by Jan 2018, as well as the Securities Financing Transactions Regulation (SFTR).
Message Automation already has some clients who have implemented its MiFID II solution and is currently working with Broadridge to address the self-reporting needs of buy-side clients.
Tom Carey, President of Global Technology and Operations International for Broadridge, said that "Our unique operational and technological insights, complemented by Message Automation's leading technology and expertise on derivatives processing models, enable us to help clients address the fragmentation of data and connectivity standards in the post-trade marketplace."
Broadridge is a leading global provider of technology-based outsourcing solutions to the financial services industry. The company offers a broad, integrated suite of innovative global solutions across the investment lifecycle, along with a wide range of cost-effective and scalable solutions. Its systems help lower clients’ capital investments in operations infrastructure, thereby allowing them to focus on core business activities.
The company’s strategy of growing through acquisitions is noteworthy. Last year, the company made two major asset buyouts. In Jul 2016, it acquired DST Systems Inc.’s North American Customer Communications (NACC) business for a cash consideration of $410 million. A few months later, it bought the technology assets of Inveshare Inc., a financial consultant, for a total consideration of $135 million.
Notably, the stock has outperformed the Zacks categorized Outsourcing industry in the last one year. Broadridge returned 22.9% in the period against the industry’s gain of 15.6%.
Nonetheless, although Broadridge’s consistent focus on product launches and acquisitions are impressive, the company’s recently lowered revenue outlook for fiscal 2017 makes us increasingly cautious about its near-term performance. Moreover, competition and pricing pressure remain other major concerns.
Currently, Broadridge carries a Zacks Rank #4 (Sell).
Both Broadcom and Micron have surpassed the Zacks Consensus Estimate in all the trailing four quarters, with long-term expected EPS growth rate of 13.6% and 10%, respectively.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>
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Broadridge Buys Post-Trade Solutions Firm Message Automation
In a move to expand its global post-trade control capabilities, Broadridge Financial Solutions Inc. (BR - Free Report) recently acquired Message Automation Limited, a leading specialist provider of post-trade control solutions. However, financial terms of the deal have not been disclosed.
Founded in 2003, Message Automation helps in managing multiple trade processing challenges faced by its clients due to changes in or creation of new regulations and market practices across all asset classes in OTC, ETD and FI markets. The company’s long list of clients includes investment banks, regional banks and buy-side firms.
Therefore, the acquisition is believed to be highly important for Broadridge as it will strengthen its ability to transform its risk and compliance capabilities for complex asset classes.
It should be noted that financial institutions have been facing challenges from growing regulatory compliances, including the pressure of implementing MiFID II by Jan 2018, as well as the Securities Financing Transactions Regulation (SFTR).
Message Automation already has some clients who have implemented its MiFID II solution and is currently working with Broadridge to address the self-reporting needs of buy-side clients.
Tom Carey, President of Global Technology and Operations International for Broadridge, said that "Our unique operational and technological insights, complemented by Message Automation's leading technology and expertise on derivatives processing models, enable us to help clients address the fragmentation of data and connectivity standards in the post-trade marketplace."
Broadridge is a leading global provider of technology-based outsourcing solutions to the financial services industry. The company offers a broad, integrated suite of innovative global solutions across the investment lifecycle, along with a wide range of cost-effective and scalable solutions. Its systems help lower clients’ capital investments in operations infrastructure, thereby allowing them to focus on core business activities.
The company’s strategy of growing through acquisitions is noteworthy. Last year, the company made two major asset buyouts. In Jul 2016, it acquired DST Systems Inc.’s North American Customer Communications (NACC) business for a cash consideration of $410 million. A few months later, it bought the technology assets of Inveshare Inc., a financial consultant, for a total consideration of $135 million.
Notably, the stock has outperformed the Zacks categorized Outsourcing industry in the last one year. Broadridge returned 22.9% in the period against the industry’s gain of 15.6%.
Nonetheless, although Broadridge’s consistent focus on product launches and acquisitions are impressive, the company’s recently lowered revenue outlook for fiscal 2017 makes us increasingly cautious about its near-term performance. Moreover, competition and pricing pressure remain other major concerns.
Currently, Broadridge carries a Zacks Rank #4 (Sell).
A couple of better-ranked stocks in the broader technology sector are Broadcom Ltd. (AVGO - Free Report) and Micron Technology (MU - Free Report) , both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Both Broadcom and Micron have surpassed the Zacks Consensus Estimate in all the trailing four quarters, with long-term expected EPS growth rate of 13.6% and 10%, respectively.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>