Broadridge Financial Solutions, Inc. BR announced yesterday that it has entered into an agreement to acquire Fi360, Inc. — a fiduciary education, training and technology company. Financial terms of the deal have been kept under wraps.
Founded in 1999, Fi360 is a leading fiduciary-focused software, data and analytics provider. It also provides the accreditation and continuing education for the Accredited Investment Fiduciary (AIF) Designation.
The deal, subject to customary closing conditions, is anticipated to be sealed this November.
How Will Broadridge Benefit?
Fi360’s fiduciary tools complement Broadridge’s Matrix trust and trading platform. They are expected to boost Broadridge’s retirement solutions, which is a positive for the Investor Communication Solutions segment. In the last reported quarter, the segment reported a disappointing performance, with revenues of $990 million declining 11% year over year.
Broadridge Financial Solutions, Inc. Revenue (TTM)
Broadridge Financial Solutions, Inc. revenue-ttm | Broadridge Financial Solutions, Inc. Quote
“Integrating Fi360's solutions set with Broadridge's leading wealth and retirement solutions will enable better support for clients as they build and maintain responsible fiduciary practices," said Michael Liberatore, head of Broadridge's Mutual Fund and Retirement Solutions business.
So far this year, shares of Broadridge have gained 29%, outperforming the 25.2% rally of the industry it belongs to and an 18.1% rise of the Zacks S&P 500 composite.
Zacks Rank & Stocks to Consider
Broadridge currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Business Services sector are CoreLogic CLGX, S&P Global SPGI and Paychex PAYX. While CoreLogic sports a Zacks Rank #1 (Strong Buy), S&P Global and Paychex carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings (three to five years) growth rate for CoreLogic, S&P Global and Paychex is estimated at 11%, 10% and 9%, respectively.
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