Broadridge Financial Solutions, Inc.
) is set to acquire a fee calculation, billing, and revenue and
expense management solutions company - Bonaire Software
The acquisition of Bonaire is part of the company's strategy
to build a portfolio of data-driven solutions for mutual fund,
retirement and asset management firms - to help them grow their
businesses, increase operational efficiency and minimize
Bonairewill be a strategic fit for Broadridge, as the business
models of both the companies are almost identical. Bonaire's
solutions would complement Broadridge's offerings for asset
managers, wealth managers and mutual funds, strengthening its
platform for the future.
At present, there is a rising demand from companies for
innovative solutions to meet stringent regulations as they will
be penalized otherwise. This acquisition will enhance
Broadridge's market credibility, as the automated compliance
process offered by it will eliminate the risks involved in the
Companies have outsourced many of their businesses to
Broadridge. Recently, it entered into a 10-year Master Services
Agreement with Apex, under which the latter will outsource its
securities processing and back office support services to
Moreover, companies such as Pension Worldwide Inc. (PNSN) have
also outsourced much of their compliance and transaction
activities to Broadridge. Given these factors, Broadridge's
growth prospects seem promising.
Although acquisitions appear to be lucrative for the company,
there is rising competition - with companies such as HD Supply
DST Systems Inc.
) creating considerable pricing pressure.
Currently, Broadridge carries a Zacks Rank #3 (Hold).
Better performing stocks in the same sector include
Sykes Entrp Inc.
), both of which have a Zacks Rank #1 (Strong Buy).
BROADRIDGE FINL (BR): Free Stock Analysis
DST SYSTEMS (DST): Free Stock Analysis Report
PORTFOLIO RCVRY (PRAA): Free Stock Analysis
SYKES ENTRP INC (SYKE): Free Stock Analysis
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