Broadridge Financial Solutions, Inc. (NYSE: BR) declared that it has inked an agreement to buy Itiviti Holding AB in an all-cash transaction priced at €2.143 billion (nearly $2.5 billion) from Nordic Capital. This acquisition will be very helpful by reinforcing the position of Broadridge as a global Fintech leader.
Itiviti is a prominent global capital markets technology service supplier. It has gained recognition for providing highly scalable solutions that financial organizations use to strengthen their trading facilities, accelerating substantial cost savings. This purchase will enhance the value for its shareholders.
This deal will create value in the form of stronger persistent revenue growth, higher margins, and higher Adjusted EPS. This revenue growth and earnings growth positions us well to provide at the higher end of its three-year growth targets for persistent revenue and Adjusted EPS growth.
The buying of Itiviti is dependent on the certain closing condition and regulatory authorization. The deal is anticipated to execute in the Q4 of Fiscal Year 2021. Broadridge is funding for the purchase through a new $2.55 billion term credit deal.