Broadridge Financial Solutions, Inc. (NYSE:BR) yesterday announced that it has completed the acquisition of ClearStructure Financial Technology, a provider of portfolio management solutions for the private debt markets. The financial terms of the deal have been kept under wraps.
So far this year, shares of Broadridge have gained 27.2% compared with 29.4% growth of the industry it belongs to and 23.3% rally of the Zacks S&P 500 composite.
A Move to Ramp Up Asset Management Services
The acquisition will help Broadridge amplify its software as a service (SaaS) technology offerings, which includes a complete front-to-back, multi-asset class solution designed to serve its wide array of clients, including hedge funds, traditional asset managers and fund administrators with better trading activities.
Inclusion of ClearStructure's component services will enable Broadridge's clients access the public and private markets. Further, ClearStructure’s private debt capabilities will generate a differentiated solution, enabling Broadridge reach out to new set of clients.
Considering the growth in private markets and the ample amount of opportunities it is creating for asset managers, the deal seems to be a strategic move on Broadridge's part to strengthen its foothold in the private debt market.
Eric Bernstein, head of asset management solutions at Broadridge, stated, "This acquisition aligns to Broadridge's strategy of providing a true cross-asset platform to enable asset management clients to have a single view into their entire book of business."
Zacks Rank & Stocks to Consider
Currently, Broadridge carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Business Services sector are Global Payments (NYSE:GPN) , Mastercard (NYSE:MA) and Cardtronics (NASDAQ:CATM) . While Global Payments and Cardtronics sport a Zacks Rank #1 (Strong Buy), Mastercard carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term expected EPS (three to five years) growth rate for Global Payments, Mastercard and Cardtronics is 17%, 15.9% and 4%, respectively.
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