Broadridge Financial Inc. announced the acquisition of NewRiver, Inc. for aproximately $77 million. A Broadridge spokesperson will be available all day for interviews. Please contact Jenna Focarino of The Torrenzano Group at (212)681-1700 ext. 115 to arrange an interview.
Lake Success, N.Y. - August 17, 2010 - Broadridge Financial Solutions, Inc. (NYSE:BR) announced today that it has signed an agreement to acquire NewRiver, Inc., a leader in electronic investor disclosure solutions, for approximately $77 million. The merger agreement, which was signed last night, has been approved by the Boards of Directors of both companies, and the transaction is expected to close in August subject to customary closing conditions. The acquisition is expected to be accretive to Broadridge's earnings per share in fiscal year 2011.
NewRiver, founded in 1995, pioneered the first electronic prospectus. Its regulatory disclosure communication solutions allow customers to reduce their compliance risk and lower their costs. Its clients include some of the industry's leading mutual funds, variable annuity insurers, retirement plan administrators and brokerage firms. NewRiver is a leader in helping clients transition from paper to electronic disclosure and has been an important supplier to Broadridge for nearly 10 years.
The acquisition accelerates Broadridge's overall e-strategy while strengthening its industry-leading compliance communication capabilities. "Combining the best-of-breed compliance communication tools and technology of our two organizations will enable us to provide a broader and deeper set of compliance communication solutions for our brokerage, mutual fund, and annuity and retirement plan administrator clients," explained Robert Schifellite, President, Investor Communication Solutions, Broadridge. He continued, "At the same time, NewRiver's capabilities will enable us to help our clients continue the transition toward electronic document delivery and access a richer set of electronic solutions."
Broadridge and NewRiver share a common belief that accurate data and documents are the cornerstone of an educated investor. Broadridge's integrated e-delivery and hard copy fulfillment capabilities, combined with NewRiver's database of content and its FundPOINT® compliance and productivity tool, will assist financial institutions in meeting their compliance and oversight requirements.
"Broadridge's acquisition of NewRiver is a natural strategic fit, as evidenced by the success of the joint solution we extended the industry last year in response to the SEC's Summary Prospectus rule," said Russell Planitzer, NewRiver's Chief Executive Officer. "More importantly, our combined creative thinking and expertise brings new levels of sophistication and innovation to electronic disclosure," he said. NewRiver's associates, located in Andover, Mass. and New Delhi, India, will become part of Broadridge's Investor Communication Solutions division.
Raymond James & Associates acted as financial advisor to NewRiver in the transaction.
Broadridge is a technology services company focused on global capital markets. Broadridge is the market leader enabling secure and accurate processing of information for communications and securities transactions among issuers, investors and financial intermediaries. Broadridge builds the infrastructure that underpins proxy services for over 90% of public companies and mutual funds in North America; processes more than $3 trillion in fixed income and equity trades per day; and saves companies billions annually through its technology solutions. For more information about Broadridge, please visit www.broadridge.com.