Alantra advises Shadow Financial Systems on its acquisition by Broadridge Financial Solutions



Oct 2019
Sell-side advisory

San Francisco – Alantra, a leading global investment bank and asset management firm, is pleased to announce its client, Shadow Financial Systems, Inc., has been sold to Broadridge Financial Solutions, Inc. (NYSE:BR), a global Fintech provider of financial infrastructure and technology-driven solutions for banks, broker-dealers, asset and wealth managers and corporate issuers. The acquisition extends Broadridge’s current industry leading post-trade processing solutions, and adds cryptocurrency and exchange traded derivatives (ETDs) capabilities. The transaction was announced on October 1, 2019 and terms of the deal were not disclosed.

Founded in 1997 to serve the changing middle and back-office technology needs of the securities industry, Shadow Financial Systems is a leading, founder-owned capital markets infrastructure SaaS platform for mission-critical post-trade lifecycle management. Its SaaS platform enables financial institutions that trade securities to modernize and streamline post-trade back-office processes. The software was architected from inception to uniquely be an enterprise-wide single system of record for trading books and records, in real-time at scale. The platform automates post-trade capture, reconciliation, clearance, settlement, treasury, and accounting processes for all functions in the middle and back-office. The Company processes millions of transactions with trillions of dollars of trading volume each day across all major asset classes—including equities, fixed income, options, futures, forex, mutual funds and cryptocurrencies—for some of the largest securities firms and exchanges in the world.

“We were immediately impressed by what the founders at Shadow had built—a modern SaaS platform automating a myriad set of complex, mission-critical workflows for some of the most discerning customers in the world at scale,” said Irfan Iqbal, Managing Director with Alantra Tech. “This transaction exemplifies a trend we expect to continue in Financial Services of modernizing the middle and back-office technology stack to match the innovations that have occurred in the front-office over the years. We are grateful to have had the opportunity to partner with Shadow Financial on a successful transaction with the industry leader,” he concluded.

“After recognizing the need for a strong partner to take us to the next level, we looked to the Alantra team to guide and assist us in navigating through the intricacies of bringing Shadow to market,” said Don Marino, CEO of Shadow Financial. “As a founder-owned business, we were particularly concerned with finding the best fit in order to serve our clients and ensure the future of the company. Broadridge brings deep domain expertise, scale, and additional technology resources to our company and we appreciate Alantra’s commitment in helping us choose the right partner for our future development,” he concluded. In addition to Mr. Iqbal, Alantra’s transaction team included Allen Kogan (Director) and Jon Ng (Associate) from Alantra US Tech.

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