Yahoo Finance Broadridge Buys Direxxis; To Better Serve Financial Advisors - Analyst Blog
Going ahead with its strategy of bringing market-leading solutions for financial advisors, Broadridge Financial Solutions Inc. BR recently acquired Direxxis LLC – a cloud-based marketing solutions and services provider. With this, Broadridge expanded its product portfolio that serves wealth and asset managers. The financial terms of the deal, however, were not disclosed.
Founded in 2003, Direxxis is a leading integrated enterprise marketing solutions provider and boasts one of the largest financial services industry client bases among major digital-marketing platforms. The company enables the delivery of important and timely sales and marketing communications across all channels which include digital media, email, social media, text messages, telephone, mail and traditional print and display advertising.
Direxxis’ marketing management and automation platform facilitate financial institutions to manage and implement marketing activities across field offices and branch locations. Furthermore, its unique analytic tools enhance marketing and sales effectiveness.
The acquisition of Direxxis is part of Broadridge’s strategy to build a portfolio of well-modified marketing tools to help customers expand their business and increase marketing efficiency. Direxxis’ solutions would complement the company’s sales capabilities, strengthening its platform and expanding it into the advisory market.
Moreover, with this acquisition, Broadridge will be able to deliver optimized solutions and best-in-class experience. Above all, Direxxis' cloud-based marketing solution will provide Broadridge a competitive advantage over Barrett Business Services Inc. BBSI and DST Systems Inc. DST.
Broadridge intends to integrate Direxxis into its wealth and advisor solutions group. Marketing communications, client on-boarding, retirement plan solutions, performance reporting, and data aggregation are the other solutions which come under this group.
Broadridge has resorted to strategic acquisitions to diversify its offerings and expand operating markets. In late Dec 2014, the company completed the acquisition of TwoFour Systems LLC — a real-time foreign exchange solution provider to banks and broker-dealers. In the same year, Broadridge also acquired Emerald Connect LLC for $60 million in cash further solidifying its foothold in the advisory market.
In our opinion, these acquisitions have helped Broadridge to evolve as one of the leading financial and outsourcing services providers. Apart from this, we believe the company’s close association with Accenture ACN will be beneficial over the long term.
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