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Broadridge to Acquire Fiduciary Services and Competitive Intelligence Business from Thomson Reuters

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21 May 2015
United Kingdom

Acquisition will significantly expand Broadridge's mutual fund data and reporting solutions globally

- Broadridge Financial Solutions, Inc. (NYSE: BR) has signed an agreement with Thomson Reuters (NYSE: TRI) to acquire the Fiduciary Services and Competitive Intelligence unit from Thomson Reuters Lipper. Broadridge's agreement with Thomson Reuters also includes a long term content and brand licensing services agreement in which Thomson Reuters Lipper will provide Broadridge with data on investment product classifications, pricing, performance, benchmarking, product asset positions, and product flows, ensuring continuity of underlying content and methodology. The acquisition will expand Broadridge's leading enterprise data and analytics solutions for mutual fund manufacturers, ETF issuers, and fund administrators, adding new global data and research capabilities.

Thomson Reuters Fiduciary Services and Competitive Intelligence business provides global market intelligence for fund industry flows by country and distribution channel. It is also the leading provider of 15(c) advisory contract renewal services for validating and benchmarking fee and expense agreements to more than 250 mutual fund families, including three-quarters of the world's largest mutual fund organizations.

"This acquisition will reinforce Broadridge's position as one of the leading providers of data solutions and market intelligence for the mutual fund sector, and expand our footprint globally," said Richard J. Daly, president and chief executive officer, Broadridge. "It is aligned with our long term strategy to grow Broadridge's enterprise data and analytics capabilities. As regulatory pressures increase and new digital opportunities emerge, these solutions will help our clients mitigate risks, meet their fiduciary responsibilities and enhance sales productivity."

Broadridge will integrate the acquired capabilities within its well established mutual fund and retirement business, expanding its existing Access Data suite of market intelligence solutions. These include compliance and reporting tools that cover 90 percent of all U.S long-term mutual fund assets and 95 percent of all ETF assets.

Gerard F. Scavelli, president of Broadridge's Mutual Funds and Retirement Solutions business division commented, "With the addition of these fiduciary services and competitive intelligence capabilities, we will expand our reach and innovative solutions for the mutual fund industry globally. These new capabilities will help our clients meet the growing demand for compliance oversight, fee benchmarking and analysis and global market intelligence, including access to fund flow, expense data and fund profile information on more than 80,000 portfolios worldwide." Mr. Scavelli continued, "We remain firmly committed to delivering the same high level of service and quality that customers have come to expect from Thomson Reuters. The same team that currently delivers these solutions will transition to Broadridge and will continue in their roles so that service will continue uninterrupted."

"Thomson Reuters and Broadridge share a common objective of providing the highest quality information and reporting services for mutual fund companies worldwide," said Lars Asplund, a managing director at Thomson Reuters. "This sale will enable us to increase our focus on the core content business and further enable development and new capabilities for serving the asset management and wealth management markets. We will continue to provide our highly respected fund data, analytics and research through desktop solutions such as Thomson Reuters Eikon, Thomson One, Lipper for Investment Management, LANA and feeds, as well as through licensed third-party platforms.  We look forward to the ongoing relationship with Broadridge."

The acquisition is expected to close during Broadridge's fourth fiscal quarter and is subject to customary closing conditions, including the termination or expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.

Terms of the agreement were not disclosed. 

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