The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
Tuesday, June 14, 2016|
Broadridge and DST Do a $410MM Deal
Broadridge and DST are doing a $410-million deal, and DST is getting out of the "customer communications business."
Reuters covered the deal.
BofA Merrill Lynch advised DST on the deal, which is expected to close next month. NACC brought in $1.1 billion in revenue in fiscal 2015, so the all-cash price tag translates into about 37 percent of annual revenue.
DST customer communications chief Mike Abbaei will join Broadridge as part of the deal. And NACC will become part of Broadridge's Investor Communication Solutions business.
Daly calls this "the next step forward in Broadridge's journey" and foresees the deal "empowering Broadridge to accelerate the industry's conversion to digital communications."
"The combined entity will create the industry's largest distributor of critical client content across North America," Abbaei states.
"The consumer reach of the combined business exceeds 75% of North America's mailboxes," states Douglas DeSchutter, president of digital communications at Broadridge, "and will allow Broadridge to greatly expand its role in digitzing critical investor and consumer content and to make every communication more valuable."
Hooley puts the deal into the context of DST's "well-defined strategy of focus and growth within [the] financial and healthcare services segments."
"In connection with on-going strategic review of DST businesses, our management team and Board of Directors have decided to exit the customer communications business," Hooley states.
Printed from: MFWire.com/story.asp?s=54204
Copyright 2016, InvestmentWires, Inc.
All Rights Reserved