Broadridge is to acquire US mutual fund processor Matrix Financial Solutions for $201 million in cash.
The Matrix trading platform distributes approximately 25,000 mutual funds from nearly 500 mutual fund families, and holds a substantial position in the rapidly growing small- and medium-sized retirement plan segment. The company is expected to generate approximately $80 million of revenue during the year ending 31 December, 2010.
Broadridge CEO Richard Daly says the acquisition will exopand the company's position as a provider of data and distribution channels to the mutual fund industry: "It will enable Broadridge to bring Matrix's unique turnkey retirement solutions to Broadridge's broker-dealer client base, increase Broadridge's product offering to the bank trust and third party administrator markets, and will deepen Broadridge's relationship with nearly 500 mutual fund complexes."
The stock purchase agreement has been approved by both companies and the transaction is expected to close before the year-end.