ROCKALL TECHNOLOGIES, A Dublin-based financial technology company, has been acquired by US firm Broadridge Financial Solutions.
Rockall provides tools to wealth management firms and banks around the area of securities-based lending, which refers to loans made using securities – a stake like equity or debt – as collateral.
Founded in 2000 and taking its name from a disputed island in the Atlantic, Rockall develops software platforms called COLLATE and FASTNET for banks to automate and manage the monitoring of this lending as well as credit risk management and regulatory reporting.
The financial terms of the deal were not disclosed when it was announced earlier this week.
“Broadridge is a leader in the wealth management industry and its size and scale accelerates our ability to meet the increasing demand from advisors and investors,” Richard Bryce, Rockall’s chief executive, said.
Broadridge said the acquisition will bolster its own securities-based lending functions.
Michael Alexander, head of North American Wealth and Capital Markets Solutions for Broadridge, said the purchase of Rockall will help expand the tech it uses that enables its offerings.
“Securities-based lending and collateral management are key industry areas in need of innovation,” he said.
Rockall’s latest set of accounts – for the financial year ended December 2017 – showed the company had a turnover of €11.2 million with an operating profit of €1.28 million.
A geographical breakdown of its revenue outlined that the vast majority of its money was made in the US and other international markets. The bulk of that revenue – €8.3 million – came from sales of its software with the rest from maintenance services.
According to the firm, its products are used by 10 of the top 30 US banks.
New York Stock Exchange-listed Broadridge, in its latest quarterly earnings, booked revenues of $953 million with an operating income of $78 million.
The Rockall deal is Broadridge’s latest following other acquisitions earlier this year of companies and assets in the fields of regulatory reporting and retirement plan custody.