Partnerships / Acquisitions

Broadridge Financial Buys Inveshare Technology Assets For $95 Million Upfront

Broadridge Financial Solutions announced on Tuesday (Sept. 20) it acquired the technology assets of Inveshare.

In a press release, Broadridge Financial said, in connection with the transaction, Broadridge has entered into a development agreement to use these technology assets to develop blockchain applications for Broadridge’s proxy business. The acquisition is expected to accelerate Broadridge’s ability to adapt distributed ledger technology capabilities to its proxy services.

Broadridge will pay $95 million upfront to acquire the existing technology assets plus a deferred payment of $40 million on delivery of the blockchain applications. The transaction is not expected to have a material impact on Broadridge’s financial results. Under terms of the deal, Broadridge granted Inveshare a perpetual license to the acquired technology assets, and Inveshare will remain an independent provider of proxy communications services.

“Broadridge plays a critical role as a leader in proxy communications services,” said Richard J. Daly, president and chief executive officer of Broadridge Financial Solutions, in the press release. “We are committed to staying at the forefront and bringing to market innovative new technologies and products that enhance corporate governance and reduce costs for all participants.”

Daly went on to say that integrating blockchain technology into the proxy process has the potential to “drive significant benefits for all participants,” including institutional and retail investors, corporate issuers, mutual funds, regulators and brokers by reducing complexity, increasing security and raising transparency. These technology assets provide Broadridge with a “dynamic architecture” that should enable the company to more rapidly develop a streamlined distributed ledger platform to bring these benefits to its clients over the next several years.

Increasingly, financial companies are looking at using blockchains in their businesses. Earlier this week, BNP Paribas Securities Services said it is looking at letting companies issue mini-bonds on its blockchain technology platform. According to a press release, the mini-bonds are for private company shares. BNP has hooked up with renewable energy crowdfunding companies Lendosphere, Enerfip and Lumo to let private companies issue the mini-bonds through the blockchain technology.

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