To significantly expand its services to buy-side clients, Broadridge Financial Solutions today announced the acquisition of Paladyne Systems for approximately $76.5 million in consideration subject to various adjustments. Paladyne is a rapidly growing provider of a market-leading set of solutions to enable global, multi-asset class investment managers and service providers to work more effectively, minimize the challenges of managing multiple prime broker relationships, decrease the cost of integrating and running disparate solutions, and improve consistency in data and reporting.
“The acquisition of Paladyne will significantly expand Broadridge’s position as a service provider to buy-side clients,” stated Richard J. Daly, Chief Executive Officer, Broadridge. “Buy-side firms purchase nearly 40% of capital markets technology and services and represent a segment of virtually untapped opportunity for Broadridge. Paladyne will serve as the foundation for the expansion of Broadridge’s buy-side offering, enabling us to bring Paladyne’s unique solutions to hedge funds, our existing prime brokerage clients, asset managers, hedge fund administrators and other asset servicers.”
“Broadridge has exceptional client loyalty and an outstanding reputation for service, dependability, and cost effectiveness. Broadridge’s extensive reach in the global financial services community and its global sales and distribution capabilities will enable Paladyne to expand significantly into new and existing market segments,” said Sameer Shalaby, Chief Executive Officer, Paladyne Systems. “Broadridge’s proven sell-side solutions and client-focused services in combination with Paladyne’s innovative buy-side technology creates one of the most comprehensive technology and services offerings within the financial services industry.”
Charlie Marchesani, President, Securities Processing Solutions, Broadridge, commented, “We believe that Broadridge is uniquely positioned to offer technology and outsourcing services to the hedge fund, asset management, fund administration, prime brokerage and custodial industry segments. The trust Broadridge has earned with our sell-side relationships and the neutral and independent role we hold in the industry will position us for success on the buy-side.” He added, “We proudly welcome the talented, visionary team at Paladyne. Working with Paladyne, we look forward to continuing to provide innovative solutions to existing and future clients on both the buy- and sell-sides. Paladyne Systems will operate as a core business within Broadridge’s Securities Processing Solutions division.”
Paladyne’s integrated front-, middle- and back-office platform provides hedge funds, asset managers, fund administrators and prime brokers with mission critical applications to streamline and manage their business.
Paladyne’s platform includes multi-asset class order and portfolio management tools; reference data, pricing and valuation management applications; and data warehousing for firm-wide data aggregation and reporting. Paladyne combines its technology with a fully-hosted, managed IT platform.
Raymond James & Associates acted as exclusive financial advisor to Broadridge in this transaction. Credit Suisse provided strategic advice to Paladyne in connection with the transaction.