Broadridge Financial Solutions agreed to acquire Matrix Financial Solutions, a provider of retirement products and services for investment administrators, financial advisors, banks and wealth management professionals.
Broadridge said it would pay $201 million in cash, subject to adjustments for Matrix's net working capital.
Matrix is an independent provider of mutual fund processing software for operators of defined contribution plans, particularly in small- and medium-sized retirement plans. Such plans can distribute approximately 25,000 mutual funds from nearly 500 mutual fund families.
"The acquisition of Matrix will significantly expand Broadridge's position as a provider of data and distribution channel solutions to the mutual fund industry," stated Richard J. Daly, Chief Executive Officer, Broadridge. "It will enable Broadridge to bring Matrix's unique turnkey retirement solutions to Broadridge's broker-dealer client base, incr''
Matrix generates about $80 million a year. Broadridge does not expect the acquisition to increase net earnings in 2011.
The stock purchase agreement has been approved by the Boards of Directors of both companies. The transaction is expected to close prior to December 31, 2010, subject to the satisfaction of customary closing conditions, including regulatory approvals.
Broadridge builds infrastructure that delivers proxy services to more than 90 percent of public companies and mutual funds in North America and processes more than $3 trillion in fixed income and equity trades per day.