January 07, 2013

SunGard has acquired XcitekSolutionsPlus, LLC, one of the financial industry’s leading providers of end-to-end automated corporate actions.

Terms of the transaction were not disclosed but Sungard said the acquisition is not expected to have a material impact on its financial results.

XSP will become part of SunGard’s capital markets business, according to today’s announcement. XSP’s current chief executive, Brendan P. Farrell, Jr., will continue to lead the XSP team, reporting to John Grimaldi, head of the North American securities business XSP offers a range of deployed, hosted and SaaS-based solutions that help automated the corporate actions processing lifecycle, including data sourcing and cleansing, position monitoring, notification and response and entitlement processing.

The move will beef up SunGard’s expertise in the corporate actions space where it competes with a range of providers from Fidelity ActionsXchange and Depository Trust & Clearing Corp. to all-around data suppliers such as Bloomberg, ,Exchange Data International (EDI), Interactive Data and Six Telekurs, among others.

“Corporate actions processing is fundamental to the successful operations of most financial services firms, including sell-side traders, custodians, asset managers, hedge funds and wealth managers, “commented Grimaldi in the release. These firms are at the heart of SunGard’s business. The acquisition of XSP will help us deliver specialist corporate actions expertise and solutions to these core customers, and enhance our offering to our securities processing, accounting and servicing customers.”

The acquisition is also a growth step for XSP, which is already considered a leading provider of automated corporate actions processing solutions.* “Becoming part of SunGard will help us grow our global footprint and further enhance the breadth of our offering,” said Farrell.

ABOUT THE AUTHOR
Ivy is Editor-at-Large for Advanced Trading and Wall Street & Technology. Ivy is responsible for writing in-depth feature articles, daily blogs and news articles with a focus on automated trading in ...