Apr 6, 2021

How will Itiviti help make Broadridge a fintech leader?

Broadridge
Fintech
Itiviti
NordicCapital
William Girling
2 min
Broadridge Financial Services' acquisition of Itiviti and its capital markets service tech could represent a significant development for its global business
Broadridge’s acquisition of Itiviti appears to represent a ‘regearing’ of its business in order to thrive in a rapidly evolving fintech market...

Based in Stockholm, Sweden, Itiviti is a global capital markets tech provider with offices in over 16 countries and more than 2,000 customers.

Its technology allows “significant cost savings” for FSIs seeking an easy and scalable method of consolidating their trading infrastructure through more efficient workflows. Furthermore, Itiviti’s order execution management systems (OEMS) facilitate worldwide multi-asset trade.

Prior to this new $2.5bn deal, the company was owned by private equity investor Nordic Capital. Expressing pride for the growth that Itiviti has achieved under its stewardship, Fredrik Näslund, Partner at Nordic, described Broadridge as the “ideal company” to help it achieve “even further growth and expansion.”

Scaling outside of North America

Despite Broadridge’s established success in the North American market, it has yet to significantly develop in either the EMEA or APAC regions. Utilising Itiviti’s well-established foothold in these areas, Broadridge expects to reach the “higher end” of the three-year seven to nine percent recurring revenue growth outlined to its investors in late 2020.

Tim Gokey, CEO, even went so far as to say that the deal “enhances Broadridge’s position as a global fintech leader,” and emphasised that its augmented capabilities will help future-proof the company:

“By extending our capabilities into the front office and deepening our multi-asset class solutions, Itiviti significantly strengthens our Capital Markets franchise and better enables Broadridge to help financial institutions adapt to a rapidly evolving marketplace.”

Itiviti’s CEO, Rob Mackay, concurred, “The combination of our technology, solutions and people will unlock significant value for our clients and drive long-term growth for our combined business.”

Adapting to digital

Having generated $4.5bn in total revenue for the 2020 fiscal year, Broadridge has certainly managed to weather the pandemic’s challenging market conditions. 

However, as the changes instigated by COVID-19 continue to develop, most notably increased digitalisation, the company is likely to encounter new obstacles to helping its customers. By selecting tech-focused partners, Broadridge has the opportunity to mitigate the strain and even flourish in the new normal.

NOTE: The Broadridge-Itiviti deal is still subject to customary closing conditions and regulatory approval at this time. If successful, the agreement should close in Q4 2021.

Image source: Broadridge Financial Services

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Jun 21, 2021

Amber Group Valued at US$1bn in $100m Funding Round

Fintech
AmberGroup
Investment
Cryptocurrencies
2 min
Amber Group has raised $100m in a fresh funding round led by China Renaissance bank, valuing the start-up at $1bn

Amber Group, a cryptocurrency financial services firm, has raised US$100m in a Series B funding round at a pre-money valuation of $1bn.

The funding round was led by Chinese investment firm China Renaissance, and other participants in the Series B include Tiger Brokers, Tiger Global Management, Arena Holdings, Tru Arrow Partners, Sky9 Capital, DCM Ventures and Gobi Partners. Existing investors Pantera Capital, Coinbase Ventures and Blockchain.com also joined in.

Michael Wu, co-founder and CEO of Amber Group said in a statement that the funding would be used to “expand global operations to meet client demand and develop market solutions for the world’s leading crypto investors and companies.”

“We’ve had record months over the past quarter across both client flow and on-exchange market-making volumes,” Wu said in a press release. “Our cumulative trading volumes have doubled from $250 billion since the beginning of the year to over $500 billion.”

Cryptocurrencies are becoming increasingly popular, with many people investing, although not everyone seems to know what they are investing in. Using survey data collected from 750 investors earlier this year, Cardify found that only 16.9% of investors who have bought crypto “fully understand” the value and potential of cryptocurrency, while 33.5% of buyers have either zero knowledge about the space or would call their level of understanding “emerging.”

 

Who is Amber Group?

Amber Group is a global crypto finance service provider with a presence in Hong Kong, Taipei, Seoul, and Vancouver. Founded in 2017, Amber Group services over 500 institutional clients and has cumulatively traded over $330 billion across 100+ electronic exchanges, with over $1 billion in assets under management. The company said that its assets under management, or AUM, reached $530 million in 2020, representing a 275% increase from the previous year. 

Instead of being a cryptocurrency exchange that allows users to trade individual digital coins, Amber Group CEO Michael Wu said the company is bringing a “private banking experience to the everyday customer.”

Their goal is to optimise investment flexibility, maximise investment returns and deliver long-lasting value for their clients. In 2019, Amber Group raised $28 million in Series A funding led by global crypto heavyweights Paradigm and Pantera Capital, with participation from Polychain Capital, Dragonfly Capital, Blockchain.com, Fenbushi Capital, and Coinbase Ventures.

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