ADP Brokerage Services Group has made an additional equity investment in Xtiva Financial Systems, a US-based provider of applications software for managing institutional and broker pay-outs and sales commission packages.
The value of the follow-on investment is undisclosed. The funds will be used to further extend Xtiva's existing products as well as develop new applications for streamlining back office operations.
ADP says the Xtiva product line provides an important complement to its existing trade processing offerings. In June 2001, ADP entered an alliance to market and sell Xtiva’s software products to its existing customer base. As part of the agreement, ADP also agreed to host Xtiva's ASP service bureau offering in its data centre in New Jersey.
In addition to the increased investment, ADP has also agreed to back Xtiva's further investment in its ASP facility, built in conjunction with IBM and Qwest Telecommunications. The first broker/dealer, with 3800 registered reps, went live last month in the data centre. Several other firms have signed contracts or are seriously considering this solution, says Xtiva.
Marianne Brown, SVP of ADP Brokerage Services Group, says: "Despite a very difficult market environment, Xtiva has shown the ability to sell in the marketplace while aggressively holding the line on expenses."
Charlie Marchesani, senior vice president of product development in ADP’s Brokerage Services Group has joined Xtiva's board.