Broadridge Financial Solutions Inc (NYSE: BR) has agreed to acquire RPM Technologies, a Toronto-based provider of enterprise wealth management software solutions and services.
Broadridge agreed to pay about $404 million (US$300 million).
The sellers include Bayshore Capital, a Canadian real estate, financial services and technology private equity firm.
Led by President and CEO Dave Poppleton, RPM currently supports more than 15 million customer accounts.
Broadridge, a U.S. financial technology company, said the acquisition will enhance its wealth management product offering in Canada.
Broadridge to Acquire a Leading Provider of Canadian Wealth Management Technology
RPM Technologies Enhances Broadridge’s Wealth Management Capabilities
NEW YORK, May 21, 2019 /PRNewswire/ — Broadridge Financial Solutions, Inc. (NYSE: BR), a global Fintech leader and part of the S&P 500® Index, today announced that it has entered into a purchase agreement to acquire RPM Technologies, a leading Canadian provider of enterprise wealth management software solutions and services for approximately $300 million USD. RPM’s technology platforms today support over 15 million customer accounts. Building on Broadridge’s strong Canadian Wealth Management business, the acquisition will bring important new capabilities and next-generation technology to both RPM’s and Broadridge’s clients.
“The addition of RPM Technologies broadens and deepens our wealth management product offering in Canada,” said Tom Carey, President of Global Technology and Operations at Broadridge. “We are very pleased to add RPM’s state-of-the-art platforms and blue-chip client roster. This investment underscores our commitment to bring value-added technology solutions to the industry, and it supports our longer-term strategy of building a strong North American Wealth business.”
“Broadridge is a global Fintech leader with deep commitment to the Canadian market and is the best future partner to extend RPM’s growth,” said Dave Poppleton, President and CEO of RPM Technologies. “With our combined technology and innovation capabilities, clients will gain deep product expansion opportunities, superior digital channel capabilities and seamless enterprise solutions.”
Partnering with Broadridge will bring the backing of a global Fintech leader to RPM’s clients. The addition of RPM expands Broadridge Canada’s addressable market by providing a solution set for the retail banking sector and adding enhanced mutual fund and deposit manufacturing capabilities. RPM has proven capabilities in the Mutual Fund Dealers Association of Canada marketplace with a suite of services and solutions and a successful track record of winning and on-boarding new clients.
The transaction is expected to contribute $40-50 million USD in revenues to Broadridge in fiscal year 2020 and is not expected to have a material impact on Broadridge’s Adjusted earnings per share.
Broadridge is purchasing RPM from its current owners which include Bayshore Capital Inc. The closing of the transaction is subject to the completion of an intercompany reorganization by RPM Technologies and standard customary closing conditions.
RBC Capital Markets is acting as exclusive financial advisor to Broadridge. Canaccord Genuity Corp. is acting as exclusive financial advisor to RPM.
Broadridge Financial Solutions, Inc. (NYSE:BR), a $4 billion global Fintech leader and a part of the S&P 500® Index, provides investor communications and technology-driven solutions to banks, broker-dealers, asset managers and corporate issuers globally. Broadridge’s investor communications, securities processing and managed services solutions help clients reduce their capital investments in operations infrastructure, allowing them to increase their focus on core business activities. With over 50 years of experience, Broadridge’s infrastructure underpins proxy voting services for over 50 percent of public companies and mutual funds globally, and processes more than $5 trillion in fixed income and equity trades per day. Broadridge employs approximately 10,000 full-time associates in 18 countries. For more information about Broadridge, please visit www.broadridge.com.
RPM is a Canadian-based company that provides state-of-the-art, enterprise-class wealth management software solutions to leading Canadian banks and wealth management firms. RPM’s mission critical solutions create a holistic, customer-centric platform for multiple investment accounts and products across multiple distribution and manufacturing platforms. RPM’s scalable solutions have enabled its clients to achieve growth in market share and significantly increased processing capacity while dramatically reducing both ongoing operational and systems costs. RPM’s systems administer over CAD $650 billion dollars of assets spread among 15 million customer accounts.
Bayshore Capital finances and builds companies that create value in financial services and information technology. Our success is based on leveraging our proven strengths and strategic assets: experienced management, transactional expertise, worldwide relationships and patient capital.
W. Edings Thibault
Head of Investor Relations
Broadridge Financial Solutions
Broadridge Financial Solutions