Broadridge Financial Solutions To Acquire A Unit Of Morningstar

A unit of the Chicago, Illinois-based Morningstar has been acquired by Broadridge Financial Solutions for an undisclosed price. Broadridge Financial Solutions, a distributor of annual reports, proxy statements as well as other documents on the behalf on public firms disclosed that it had purchased the 15(c) board consulting unit of Morningstar. The division provides boards of directors at mutual fund firms with data on issues of corporate governance.

“This acquisition broadens the breadth and depth of the data-driven solutions Broadridge provides to the investment management industry and underscores our commitment to providing innovative services to help clients get ahead of today’s challenges and capitalize on tomorrow’s opportunities,” Dan Cwenar, the head of buy-side analytics and data at Broadridge Financial Solutions,said.

Corporate governance data

Since it acquired the Fund Information Services unit of Thomson Reuters in 2015, Broadridge Financial Solutions has provided corporate governance data to the boards of mutual funds. The new acquisition will further expand the offerings of Broadridge in this segment. The five employees at the Morningstar division will all join Broadridge. Currently Broadridge has a global workforce totaling over 10,000 employees who are spread in 16 countries.

The acquisition comes less than a month since Broadridge Financial Solutions announced that it would begin offering automated investment management after teaming up with Wealthsimple, a robo-advisory firm based in Canada. Broadridge’s new service will be integrated with the platform of Wealthsimple and this will allow compliance, client onboarding and account transfers. With the platform clients will have access to low-cost investment products. Initially the new system will be launched in Canada.

Expansion in Long Island

Additionally a subsidiary of Broadridge Financial Solutions, Broadridge Investor Communication Solutions, has announce that it will be expanding in Long Island at a cost of $125 million. The expansion will consist of an acquisition of new equipment that will be installed at three facilities besides some renovations in Suffolk County locations.

Inducement resolutions have already been approved by Suffolk County and this will allow tax Broadridge to enjoy tax breaks. Besides maintaining its 1,700 employees in the county, there will be 262 new well-paying jobs which will be created in the next half a decade. In its application for tax breaks Broadridge indicated that it had also considering expanding in India, Texas, and New Jersey as it has plants in all these locations. Broadridge has also recent tax credits and grants from the Empire State Development of approximately $27.5 million.

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