NEW YORK and TORONTO - Broadridge Financial Solutions , Inc. (NYSE:BR), a global fintech leader, has successfully completed the acquisition of Kyndryl's Securities Industry Services (SIS) platform. The transaction, which was previously announced, is aimed at enhancing the wealth management and capital markets software solutions offered to Canadian financial services firms.
The integration of Kyndryl's SIS platform into Broadridge's suite of services is expected to bring about accelerated innovation and increased investment in products for the Canadian wealth market. Broadridge is recognized for its commitment to providing advanced solutions that promote simplification and innovation within the financial services industry.
Broadridge operates on a global scale, offering technology and services that support the financial services sector in various capacities, including investment management, governance, and communications. The company's platforms are crucial in processing over 7 billion communications annually and support the daily trading of securities worth more than $10 trillion globally.
With the completion of the acquisition, Broadridge, which is part of the S&P 500® Index and a certified Great Place to Work®, continues to solidify its position in the industry. The firm employs more than 14,000 associates across 21 countries.
The information for this article is based on a press release statement.
In other recent news, Broadridge Financial has been the subject of several significant developments. First, DA Davidson has maintained a neutral rating on the company's stock, despite an increase in the expected Event Driven proxy revenue to $93 million and a subsequent uplift in the first-quarter Non-GAAP Earnings Per Share (EPS) prediction to $1.04. The full-year Non-GAAP EPS forecast for fiscal 2025 remains unchanged at $8.45, marking a 9% year-over-year increase.
Broadridge Financial also unveiled Tradeverse, a new data platform aimed at transforming how trading firms manage and use their data. This platform consolidates real-time, multi-asset class data from various applications and platforms, aiming to reduce errors and maintain data integrity.
RBC Capital has increased Broadridge's share price target from $239 to $246, maintaining an Outperform rating, following the company's robust fiscal fourth-quarter 2024 performance. The company's recurring and total revenues met and exceeded RBC Capital's estimates, respectively, while the adjusted EPS for the quarter surpassed both RBC Capital's estimates and overall market expectations.
Broadridge reported strong performance for fiscal year 2024, with record closed sales of $342 million, a 39% increase from the previous year, and a 10% growth in adjusted EPS. The company also acquired Kyndryl SIS business in Canada, aiming to strengthen its wealth solutions in the Canadian market. The company is projecting 5-7% organic recurring revenue growth and 8-12% adjusted EPS growth for fiscal year 2025.
InvestingPro Insights
Broadridge Financial Solutions' recent acquisition of Kyndryl's Securities Industry Services platform aligns well with the company's strong financial performance and market position. According to InvestingPro data, Broadridge boasts a market capitalization of $24.65 billion, reflecting its significant presence in the fintech sector.
The company's revenue growth of 7.36% over the last twelve months, coupled with an EBITDA growth of 14.29%, suggests that Broadridge is effectively expanding its operations and improving profitability. This growth trajectory is likely to be further bolstered by the strategic acquisition, which aims to enhance Broadridge's offerings in the Canadian wealth management market.
InvestingPro Tips highlight Broadridge's financial strength and shareholder-friendly policies. The company has raised its dividend for 17 consecutive years and maintained dividend payments for 18 years, demonstrating a commitment to returning value to shareholders. This is particularly noteworthy given the company's current dividend yield of 1.67% and impressive dividend growth of 21.38% over the last twelve months.
Furthermore, Broadridge's perfect Piotroski Score of 9 indicates strong financial health across various metrics, which bodes well for its ability to integrate and leverage the newly acquired platform effectively.
Investors should note that while Broadridge trades at a high P/E ratio of 35.46, this may be justified by the company's consistent profitability and growth prospects. The stock's 25.69% total return over the past year suggests that investors have been rewarding the company's performance and strategic initiatives.
For those interested in a deeper analysis, InvestingPro offers 12 additional tips on Broadridge, providing a comprehensive view of the company's financial health and market position.
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