ADP Brokerage Services Group has signed an agreement to buy the US Clearing and BrokerDealer Services divisions of Bank of America for an undisclosed sum.
Following the acquisition, ADP will offer a traditional clearing service to retail and institutional broker/dealers in the US who want to outsource the entire back office function.
ADP says the acquisition will enable it to expand its BPO services by offering a three-tier service comprising of a technical service bureau, operations outsourcing and full-scale back office outsourcing.
John Hogan, group co-president, ADP, says: "Our existing global processing capability and our extensive investor communication suite of products when packaged as part of a clearing relationship will significantly differentiate our offering."