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Broadridge acquires Kyndryl’s wealthtech platform

Broadridge acquires Kyndryl’s SIS, forging a strategic partnership in Canadian Wealth Management. This move promises innovation and client benefits, with the deal closing soon, advised by RBC Capital Markets.

  • Marina Mouka
  • May 20, 2024
  • 3 minutes

Global fintech leader Broadridge Financial Solutions, Inc. has announced a strategic move to acquire Kyndryl’s Securities Industry Services (SIS) wealth and capital markets technology platform. This acquisition signifies a deepening of Broadridge’s commitment to the Canadian financial services sector, promising to bring innovative solutions to the complex challenges faced by Canadian firms.

SIS solutions include clearing and settlement, account record keeping, tax and regulatory reporting, and integrated order management activities for Canadian financial services firms. Kyndryl intends to partner with Broadridge Canada by providing managed services and capabilities to SIS.

Broadridge acquires Kyndryl’s SIS: benefits and client advantages

The partnership between Broadridge and Kyndryl is set to deliver significant advantages to both companies and their clientele. Karin Kirkwood, President of Broadridge Canada, stated: “The partnership with Kyndryl and the acquisition of the SIS business further underscore Broadridge’s long-standing commitment to being a leading technology provider to Canadian financial services firms. The combination of the SIS technology business and Kyndryl managed services with our industry-leading Broadridge Wealth Platform will further accelerate our ability to bring innovation to Canada and meet the increasingly complex needs of Canadian firms.”

Farhaz Thobani, President of Kyndryl Canada also highlighted the win-win nature of the collaboration for Canadian clients. “Broadridge has been a long-standing partner. This latest collaboration is a win-win for our Canadian clients,” said Farhaz Thobani, President of Kyndryl Canada. “Broadridge shares our commitment to drive technology innovation at scale. It makes them the right acquirer for the SIS business and brings additional innovation to our clients.”

Broadridge’s track record of driving technology innovation at scale makes it an ideal acquirer for the SIS business, ensuring that clients will benefit from additional innovation.

Financial impact and trading activity expansion

The transaction is anticipated to close in the coming months, pending customary closing conditions and regulatory approvals. RBC Capital Markets has been appointed as the exclusive financial advisor to Broadridge for this transaction. While the acquisition is not expected to have a material impact on Broadridge’s financial results, it represents a strategic investment in the future of Canadian wealth management technology.

In March, Broadridge also launched a new derivatives trading technology platform for institutional clients in the Futures Commission Merchant sector. This initiative addresses the rising trading volumes in derivatives markets and the need for better order and execution management.

The new platform, called Broadridge Futures and Options, provides tailored solutions to improve the trading experience for buy-side clients and allows sell-side firms to gain insights into trading activities and risk management. The platform also aims to streamline trading activities by enhancing order and execution management, thus supporting growth in the listed futures and options marketplace. It integrates workflows and data to address regulatory challenges, while its automation capabilities enhance the derivatives trading experience through improved analytics.