Broadridge Financial Solutions, Inc. has agreed to acquire NewRiver, Inc., a provider of electronic investor disclosure solutions, for approximately $77 million. NewRiver’s work force, located in Andover, Massachusetts and New Delhi, India, will become part of Broadridge’s Investor Communication Solutions division.
The merger agreement has been approved by the Boards of Directors of both companies and the transaction is expected to close in August subject to customary closing conditions. The acquisition is expected to be accretive to Broadridge’s earnings per share in fiscal year 2011.
NewRiver, founded in 1995, pioneered the first electronic prospectus. Its regulatory disclosure communication solutions allow customers to control compliance risk and costs. Its clients include mutual funds, variable annuity insurers, retirement plan administrators and brokerage firms. NewRiver has been a supplier to Broadridge for nearly 10 years.
The acquisition accelerates Broadridge’s e-strategy while strengthening its industry-leading compliance communication capabilities, the company said in a release. “Broadridge’s integrated e-delivery and hard copy fulfillment capabilities, combined with NewRiver’s database of content and its FundPOINT compliance and productivity tool, will assist financial institutions in meeting their compliance and oversight requirements.”
“Broadridge’s acquisition of NewRiver is a natural strategic fit, as evidenced by the success of the joint solution we extended the industry last year in response to the SEC’s Summary Prospectus rule,” said Russell Planitzer, NewRiver’s Chief Executive Officer. “More importantly, our combined creative thinking and expertise brings new levels of sophistication and innovation to electronic disclosure,” he said.
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