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Industry Spotlight > Mergers and Acquisitions

Broadridge Buys Marketing Platform AdvisorStream

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What You Need to Know

  • The acquisition stands to help advisors attract and engage prospects and clients across key digital channels, Broadridge says.
  • Initial opinions of fintech experts on the acquisition were decidedly mixed.
  • Terms of the transaction were not provided.

Broadridge Financial Solutions acquired AdvisorStream in a transaction that Broadridge said Wednesday will expand its front-to-back office wealth capabilities and position it to serve growth-oriented advisors and firms looking to attract and engage prospects and clients across key digital channels.

AdvisorStream is a provider of digital engagement and marketing solutions for the global wealth and insurance industries.

Initial reactions from fintech sector experts were decidedly mixed.

Noting that Broadridge has been providing marketing tools to the wealth management industry for years, Joel Bruckenstein, president of Technology Tools for Today (T3), told ThinkAdvisor that AdvisorStream was a “welcome addition” to Broadridge’s lineup.

Calling AdvisorStream an “innovative marketing platform,” Bruckenstein said it is, “in my opinion, more attuned to the needs of independent advisors than Broadridge has been in recent years, so if it a great pickup for Broadridge. I think there are definitely some synergies to exploit.”

However, Doug Fritz, CEO and founder of F2 Strategy, said he loved Broadridge but had “zero idea why they’d buy this firm.” After all, he said, Broadridge has “not materially integrated any of their previous firms.”

Fritz speculated that Broadridge acquired AdvisorStream “because they want to have something in the ‘advisor digital’ space, but from the outside in: There’s zero chance this is going to make a difference to either AdvisorStream or Broadridge’s current or prospective firms.”

However, “if Broadridge commits to spending $2-5 million on integrating the tech somewhere (though I can’t think of where that would be…), I would change my mind,” he added.

Financial terms of the transaction, which Broadridge said closed on Wednesday, were not disclosed.

AdvisorStream’s advisor marketing platform helps advisors to “drive revenue and growth by providing personalized and consistent client communications,” Broadridge said.

The platform “combines powerful marketing automation with highly engaging content licensed from global sources” that include Dow Jones Newswires (including The Wall Street Journal and Barron’s), The New York Times, Forbes, Bloomberg Media and The Globe & Mail, Broadridge said.

“Broadridge’s broad data foundation, combined with AdvisorStream, will empower financial advisors to pinpoint what is most relevant and engaging for individual prospects and clients at each step of the investor lifecycle,” according to Broadridge. “Advisors can drive revenue and growth by providing every investor with the right communication, at the right time, in the manner that is most meaningful to them.”

Additionally, AdvisorStream’s “robust compliance capabilities provide flexibility for advisors while still easily integrating into existing head office marketing workflows,” Broadridge said.

“The events of 2020 have transformed the nature of advisor and client collaboration and communications,” according to Michael Alexander, president of wealth management at Broadridge. “They have also heightened overall investor expectations for personalized and relevant communications from their advisor,” he said in a statement.

“AdvisorStream’s platform provides the most effective means for advisors to engage, convert and nurture relationships by leveraging highly credible content across digital channels,” Alexander added. “The acquisition of AdvisorStream is the latest example of Broadridge growing our wealth management business by expanding our core offerings for clients.”

Investment banking specialist Alantra was AdvisorStream’s financial advisor on the transaction.

“When we created AdvisorStream, we set out to help advisors grow by solving the challenge of connecting with clients, building trust and credibility by leveraging technology for better communications,” according to Kevin Mulhern, CEO of AdvisorStream.

“Becoming part of Broadridge will allow us to deliver our advisor solutions to a broader client set and enhance the effectiveness of our platform as we bring a premium omni-channel solution to wealth firms and advisors of all stripes globally,” he said in the announcement.

Pictured: Michael Alexander, president of wealth management at Broadridge 


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