Broadridge Financial Solutions, Inc. announced Tuesday, August 17, that it had signed an agreement to acquire NewRiver, Inc., a leader in electronic investor disclosure solutions, for approximately $77 million. The merger has been approved by the Boards of Directors of both companies, and the firms say the transaction is expected to close this month.
NewRiver, which was founded in 1995 and provides compliance solutions to some of the industry’s leading mutual funds, variable annuity insurers, retirement plan administrators, and brokerage firms, is well known for pioneering the first electronic prospectus.
Robert Schifellite, president of Investor Communication Solutions at Broadridge, said in a statement, that “combining the best-of-breed compliance communication tools and technology of our two organizations will enable us to provide a broader and deeper set of compliance communication solutions for our brokerage, mutual fund, and annuity and retirement plan administrator clients.” At the same time, he said, “NewRiver’s capabilities will enable us to help our clients continue the transition toward electronic document delivery and access a richer set of electronic solutions.” NewRiver’s associates, located in Andover, Massachusetts, and New Delhi, will become part of Broadridge’s Investor Communication Solutions division.
The two firms note in their joint news release that Broadridge’s integrated e-delivery and hard copy fulfillment capabilities, combined with NewRiver’s database of content and its FundPoint compliance and productivity tool, “will assist financial institutions in meeting their compliance and oversight requirements.”
Russell Planitzer, NewRiver’s CEO, said in the same statement, “Broadridge’s acquisition of NewRiver is a natural strategic fit, as evidenced by the success of the joint solution we extended the industry last year in response to the SEC’s Summary Prospectus rule. More importantly, our combined creative thinking and expertise brings new levels of sophistication and innovation to electronic disclosure.”