1. News
May 14, 2024

Broadridge Financial Solutions to buy Kyndryl’s Securities Industry Services

The SIS wealth and capital markets technology platform encompasses account record keeping, tax and regulatory reporting, clearing and settlement, and integrated order management activities for Canadian financial services firms

Fintech company Broadridge Financial Solutions has agreed to acquire Kyndryl’s transaction processing platform for the securities brokerage industry in Canada, dubbed Securities Industry Services (SIS).

The terms of the transaction were not revealed.

The SIS wealth and capital markets technology platform encompasses account record keeping, tax and regulatory reporting, clearing and settlement, and integrated order management activities for Canadian financial services firms.

Upon the completion of the acquisition, Kyndryl will offer managed services and capabilities to Broadridge Financial Solutions related to SIS.

The Broadridge Financial Solutions’ acquisition is expected to further enhance Kyndryl’s focus on core growth areas.

Kyndryl Canada president Farhaz Thobani said: “Broadridge has been a long-standing partner and this latest collaboration is a win-win for our Canadian clients.

“Broadridge shares our commitment to drive technology innovation at scale, making them the right acquirer for the SIS business and bringing additional innovation to our clients.”

According to Broadridge Financial Solutions, the acquisition will not have a material impact on the company’s financial results.

Broadridge Canada president Karin Kirkwood said: “The partnership with Kyndryl and the acquisition of the SIS business further underscore Broadridge’s long-standing commitment to being a leading technology provider to Canadian financial services firms.

“The combination of the SIS technology business and Kyndryl managed services with our industry-leading Broadridge Wealth Platform will further accelerate our ability to bring innovation to Canada and meet the increasingly complex needs of Canadian firms.”

Subject to customary conditions, including regulatory approvals, the deal is anticipated to be completed close in the coming months.

RBC Capital Markets served as the exclusive financial adviser to Broadridge Financial Solutions on the transaction.

In 2022, Broadridge Financial Solutions partnered with open finance solutions provider MX Technologies to broaden its offering of digital engagement tools for wealth management companies.