Street Calls of the Week
NEW YORK - Broadridge Financial Solutions, Inc. (NYSE:BR), a $29.7 billion market cap financial technology leader with annual revenues of $6.9 billion, has acquired retirement plan technology provider iJoin, according to a press release statement issued Tuesday. According to InvestingPro data, Broadridge maintains strong financial health metrics and has consistently delivered value to shareholders, with an impressive 18-year track record of dividend increases.
The acquisition brings together Broadridge’s retirement plan servicing capabilities with iJoin’s participant onboarding, managed accounts, retirement income, and data-driven engagement services. The combined offerings aim to serve record keepers, financial advisors, asset managers, and insurers across the retirement ecosystem. With a robust return on equity of 35% and steady revenue growth of 5.9% over the last twelve months, Broadridge continues to strengthen its market position through strategic acquisitions.
"With increasing demand for personalization, growing interest in lifetime income options, and the convergence of retirement and wealth management, there is a greater need for advanced tools and technology," said Mike Tae, Group President of Funds, Issuer, and Data-driven Solutions at Broadridge.
iJoin’s technology enables streamlined participant enrollment into 401k plans, more efficient delivery of managed account and income solutions, and improved identification of participant cohorts for personalized education campaigns.
Steve McCoy, CEO of iJoin, stated, "Our mission has always been to help record keepers, plan advisors, and plan sponsors connect participants to highly personalized, goal-based solutions that lead to better outcomes."
The transaction is not expected to have a material impact on Broadridge’s financial results. Financial terms of the acquisition were not disclosed.
Broadridge, a member of the S&P 500 Index, processes over 7 billion communications annually and handles daily average trading of over $15 trillion in securities globally.
In other recent news, Broadridge Financial Solutions reported its fiscal fourth-quarter earnings, revealing an adjusted earnings per share of $3.55, which slightly exceeded the forecast of $3.50. Revenue aligned with expectations, reaching $2.06 billion. DA Davidson responded to these results by raising its price target for Broadridge to $240, while maintaining a Neutral rating on the stock. Raymond James also increased its price target to $276, maintaining an Outperform rating, and noted improving sales conditions as the fiscal year progressed.
Additionally, Broadridge announced a strategic partnership and minority investment in Uptiq, an AI platform for financial services. This collaboration aims to integrate Uptiq’s technology into Broadridge’s Wealth Lending Network, enhancing AI applications for automating securities-based lending workflows. These developments highlight Broadridge’s efforts to strengthen its market position and leverage AI technology in its operations.
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