ADP brokerage Services - a provider of investor communications and securities processing services to the wholesale financial markets - has been officially spun off from parent group Automatic Data Processing into a separate limited company, Broadridge Financial Solutions.
ADP shareholders received one share of Broadridge stock for every four shares of ADP stock, leaving 138.5 million shares outstanding. The newly independent company began trading as a member of the S&P MidCap 400 Index at Monday's market opening.
Broadridge CEO, Rich Daly, comments: "As an independent company focused on providing solutions to the financial services industry, we believe Broadridge is well positioned to execute strategic initiatives specific to our business needs, provide expanded solutions for our clients and increase opportunities for our associates."
Broadridge claims nearly $2 billion in revenue and seven of the top ten US broker dealers a client. Additionally, its fixed income business processes trades with an aggregate settlement value of over $2 trillion each day.
The move to spin off the business was first signalled in August last year.