Broadridge Financial Solutions, Inc. (NYSE: BR) has acquired TwoFour Systems LLC, a provider of real-time foreign exchange solutions for banks and broker-dealers, to address the rising demand for advanced FX and cash management technology among financial institutions. TwoFour Systems LLC is the technology subsidiary of TwoFour Holdings LLC. The transaction was completed December 30, 2014; terms were not disclosed.
TwoFour's technology provides componentized front-to-back office integration with straight-through-processing for FX, exchange-traded futures and options, metals, interest rate derivatives and money market instruments. Its cash management solution provides intra-day real-time aggregation and reporting of balances and cash flows with detailed global position-views for single and multi-entity institutions.
"This acquisition advances our strategy to deliver powerful multi-asset class solutions to our clients globally," said Broadridge President and Chief Executive Officer Richard J. Daly. "It is one of the latest developments in our ongoing tuck-in acquisition strategy, which continues to bring innovative technologies to our clients and strong internal rates of return to Broadridge."
Broadridge is integrating the technology with its reconciliations and matching technologies to create a solution that supports an extensive range of cash and liquidity processes. TwoFour Systems will be branded Broadridge FX and Liquidity Solutions, operating within Broadridge's Global Technology and Operations division.
"Financial institutions are looking to capitalize on growth in the foreign exchange market, as emerging markets mature and international currencies become more important," said Tom Carey, President, Global Technology and Operations International, Broadridge. "TwoFour's technology will enhance Broadridge's ability to provide solutions to its clients within a critical asset class, enabling banks, payment companies and broker-dealers to expand their offerings and revenue streams. We are delighted to have these solutions, experienced management, and highly skilled people enhancing our overall solution capabilities."
"TwoFour's technology, market strategy and high-touch, client-centric approach directly align with Broadridge's mission to help financial institutions mutualize costs and increase efficiencies, and we are thrilled to become part of the Broadridge family," said Steve Davis, general manager of Broadridge FX and Liquidity Solutions and former CEO of TwoFour Holdings. "As part of Broadridge we are better-positioned than ever to enable banks, payment companies and broker-dealers around the world to use this flexible and dynamic offering to capitalize on the opportunities in the foreign exchange markets."