
August 17, 2010
Broadridge to Buy Investor-Information Company NewRiver for $75MM
Broadridge Financial Solutions Inc. has agreed to acquire electronic-investor disclosure software company NewRiver Inc. for about $77 million, giving Broadridge another offering for clients in the investment community.
Broadridge provides software for trading and back-office operations in the financial industry. Buying NewRiver 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," said Broadridge executive Robert Schifellite.
NewRiver, founded in 1995, "pioneered" the electronic prospectus, said Broadridge, which has worked with NewRiver for nearly a decade. The deal is expected to close this month and boost Broadridge's earnings in its recently started fiscal year.
After a recapitalization in 2006, NewRiver closed a $7.5 million Series A from Pequot Capital Management and Lazard Technology Partners. In 2008 it raised $6.35 million to acquire CAE Solutions Corp., an outsourcing firm in India, according to VentureWire archives.
The acquisition comes as Broadridge's profit has been falling. Last week it reported a 10% drop in earnings for the fiscal fourth quarter on losses from discontinued operations while revenue rose.
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