Broadridge acquires Kyndryl’s wealth tech business in Canada

NEW YORK, UNITED STATES and TORONTO, CANADA — Global fintech provider Broadridge Financial Solutions, Inc. has announced the acquisition of Kyndryl’s Securities Industry Services (SIS) wealth and capital markets technology platform. The move strengthens Broadridge’s position as a leading technology provider for Canadian financial services firms.
The SIS solutions, renowned for their comprehensive services in clearing and settlement, account record keeping, and regulatory compliance, will be integrated into Broadridge’s portfolio.
A win-win for Canadian financial services
The collaboration, which integrates Kyndryl’s managed services with Broadridge’s leading Wealth Platform, is expected to substantially benefit Canadian clients.
“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,” said Karin Kirkwood, President of Broadridge Canada.
“Broadridge has been a long-standing partner and this latest collaboration is a win-win for our Canadian clients,” said Farhaz Thobani, President of Kyndryl Canada. He highlighted the mutual commitment to driving technological innovation, which makes Broadridge the ideal partner for the SIS business.
Transaction details and financial impact
The transaction is expected to close in the coming months, subject to customary closing conditions, including regulatory approvals. RBC Capital Markets acted as Broadridge’s exclusive financial advisor. The deal is not anticipated to have a material impact on Broadridge’s financial results.
Broadridge has over $6 billion in revenues and employs over 14,000 associates across 21 countries. It provides critical infrastructure for investing, corporate governance, and communications. Its technology-driven solutions drive business transformation for banks, broker-dealers, asset and wealth managers, and public companies worldwide.
Meanwhile, Kyndryl is the world’s largest IT infrastructure services provider, with over $16 billion in revenue. The company designs, builds, manages, and modernizes complex information systems.
Broadridge Financial’s acquisition-driven recurring revenue model has driven impressive top-line increases. Its business model, characterized by recurring fee revenues and strategic acquisitions, supports revenue growth across a diverse product portfolio.
Its diverse portfolio across governance, capital markets, and wealth management positions, as well as the demand for tech-enabled services, are climbing. Last year, it launched its new trading solution, which also helped clients achieve better trading decisions and client insights.
For fiscal 2024, Broadridge projects recurring revenue growth of 6-9% and adjusted earnings per share growth of 8-12%. The Zacks Consensus Estimate for the firm for FY24 revenues is pegged at $6.54 billion, suggesting an annual increase of 7.9%. The consensus mark for earnings is also at $7.72, indicating growth of 10.1% from the year-ago figure.