IBS Journal February 2015
Broadridge finalises acquisition of TwoFour Systems
Broadridge has finalised the acquisi- tion of FX and liquidity management solutions provider, TwoFour Systems. The merger was finalised at the end of December for an undisclosed amount. The TwoFour branding has been replaced by Broadridge FX and Liquidity (FXL), which will reside within Broadridge’s global technology and operations divi- sion. The management team of TwoFour, including co-founders Steve and Chris Davis, will remain on board, with the for- mer as general manager of Broadridge FXL.
The merger has been in the pipe-
line since the two firms struck a partner- ship agreement towards the end of 2013 to provide an end-to-end solution for treasury-based instruments, says David Campbell, head of strategy, global tech- nology and operations international at Broadridge. ‘Over the last six months both sides agreed that we should look at some additional strategic options,’ he remarks. Campbell adds that new entrants to
the FX market have driven demand for niche software, which is why TwoFour was an attractive proposition. ‘The per- centage of trades being done by firms outside the top tier has increased, and we think that it is a market that will continue to grow,’ he states. In addition, Campbell says that TwoFour shares a similar culture to Broadridge and there are similarities in the technology underpinning both offerings (TwoFour’s system is based on .Net and written in C#). The acquisition is intend-
ed to bolster Broadridge’s portfolio of reconciliation software (which came via the acquisition of City Networks in 2010), FX matching and Swift capabilities. ‘We can now offer a strong, modern and functional technology platform which is compo- nent-oriented. We can solve a variety of issues by being able to deploy components that can meet clients’ spe- cific needs, or provide a full
© IBS Intelligence 2015
end-to-end solution to meet the full set of requirements,’ says Campbell. Broa- dridge also has plans to offer the Two- Four platform on an outsourced basis and intends to cross-sell the TwoFour product within Broadridge’s client base and vice versa. TwoFour’s main area of focus has been North America, but Campbell says that Broadridge will now take the soft- ware to other markets, such as EMEA and APAC, where it has an established pres- ence. TwoFour is the latest in a line of
acquisitions by Broadridge over the last few years. Following on from City Net- works in 2010, Broadridge muscled into the buy-side sector with the $76.5 mil- lion purchase of Paladyne in September 2011. Paladyne brought with it front- to-back office investment management processing software. And in July 2013, Bonaire Software Solutions, a provider of fee calculation, billing, and revenue and expense management systems for asset managers, was purchased for an undis- closed amount. The treasury systems market has
been gradually whittled down in number over the last few years via M&A activity. Independent suppliers IT2, FSS, Ffastfill and Wall Street Systems were all bundled into one by investment firm Ion Trading in 2013, leaving TwoFour as one of the remaining few standalone offerings on the market.
New from IBS: Supplier white papers
IBS is releasing a series of white papers, focused on the leading vendors in our sector.
The first ones launched are for Avaloq, Sopra Banking Software (Sopra Banking Platform/Thal- er), TCS (Bancs) and Temenos (T24). Others will follow and customers can also request bespoke ones. Each white paper includes an extensive write-up of the vendor, its system, its evolution, strategy, functionality, technology, user experi- ences and product roadmap, plus an extensive user list.
Avaloq (16 pages): The white paper considers the rise and rise of this leading vendor in the private banking/wealth management space. As it moves into tier one banks, will it be able to continue delivering successful projects and will it remain applicable for smaller banks?
Sopra Banking Software (22 pages): How is Thaler faring under its French parent? How does it fit with the rest of the product set and what is the strategy? We look at the growth of Callataÿ & Wouters, its success in western Europe and be- yond, the experiences of users such as Rabobank, and where the system is now heading as Sopra Banking Platform.
TCS Financial Solutions (26 pages): Bancs is a long-stayer in the retail banking space, with a key attribute being scalability. Using its considerable resources, TCS has developed a Java version and continues to invest in its flagship core banking system, with its project at US-based Zions Bancor- poration particularly in the spotlight at present.
Temenos (48 pages): T24 is consistently one of the two top sellers in the core banking systems sector, benefiting from breadth and depth of function- ality, the focus and reach of the supplier, and continued R&D. It gains broad universal banking deals as well as more niche ones, in areas such as wealth management. What are its strengths, as well as its weaknesses, and what have been the experiences of key users?
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Broadridge headquarters
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