Broadridge Financial Solutions has bought Rockall, which offers securities-based lending (SBL) and collateral management solutions for wealth managers and commercial banks.
The companies did not reveal the deal value.
The takeover is said to enhance the core front-to-back office wealth capabilities of Broadridge.
Broadridge believes SBL to be significant for wealth managers.
According to the firm, SBL enables wealth managers to boost revenues and improve retention of advisers and investors.
At the same time, Broadridge also raised concerns regarding SBL.
The firm said that currently, wealth managers face issues with SBL owing to legacy infrastructure and internal systems that depend on manual processes.
Rockall, which is based in Ireland, offers a cloud-based wealth lending solution dubbed FASTNET.
The solution is designed to automate SBL management.
Rockall also offers COLLATE- a collateral management solution that supports credit risk management and regulatory reporting.
Broadridge head of North American Wealth and Capital Markets Solutions Michael Alexander said: “The acquisition of Rockall is the most recent example of Broadridge growing our wealth franchise by expanding our core wealth offering for clients.
“Securities-based lending and collateral management are key industry areas in need of innovation, and we look forward to leveraging next-generation technology to provide proven solutions to clients while mutualising key front-, middle- and back-office functions.”
Earlier this year, Broadridge purchased certain private fund regulatory reporting solutions from PivotData and its partner Sol Hedge.