Broadridge buys blockchain technology assets of Inveshare
Broadridge Financial Solutions has acquired technology assets of financial consultant Inveshare to develop blockchain applications
Broadridge Financial Solutions has acquired technology assets of financial consultant Inveshare to develop blockchain applications for its proxy business.
As per the agreement, Broadridge will pay $95m upfront and an additional deferred payment of $40m upon delivery of the blockchain applications.
Also, Broadridge granted Inveshare a perpetual license to the acquired technology assets and Inveshare will remain an independent provider of proxy communications services.
Broadridge said it expects the acquisition to accelerate its ability in adapting distributed ledger technology capabilities to its proxy services.
Commenting on the deal, Broadridge president and CEO Richard J. Daly said: “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.
“While lacking the extensive and critical functionality of Broadridge’s industry leading platforms (e.g. ProxyEdge and other voting reconciliation and compliance tools), these technology assets provide Broadridge with a dynamic architecture that should enable us to more rapidly develop a streamlined distributed ledger platform to bring these benefits to our clients over the next several years,” Daly concluded.
The deal is not expected to have a material impact on Broadridge’s financial results.