Broadridge Financial Solutions acquires Shadow Financial Systems

Broadridge Financial Solutions Inc. has purchased a New Jersey company that sells software for processing and recording stock trades and other financial transactions — including those where cryptocurrency is used for payment, officials said Tuesday.

The investor communications company, with its headquarters in Lake Success, bought Shadow Financial Systems Inc. in Piscataway for an undisclosed amount.

Shadow develops and sells software used in post-trade processing. Its products bear the brand name ShadowSuite.

The company was founded in 1997, and its customers include the New York Stock Exchange, mutual fund giant Fidelity and investment advising firm Raymond James Associates. In May, Shadow said it was increasing the size of its headquarters to accommodate sales growth.

Broadridge officials said Tuesday the acquisition expands the company’s post-trade processing services to cryptocurrency and exchange-traded derivatives.

“We look forward to bringing real benefits to a new set of market participants as well as new capabilities to our existing client base,” said Michael Alexander, co-head of Broadridge’s North American Wealth and Capital Markets Solutions division.

Broadridge delivers billions of annual reports, proxy statements and other documents to shareholders each year, and processes trillions of dollars in stock trades each day. It has large processing facilities in Edgewood, where about 2,300 people work.

A Broadridge spokesman declined Tuesday to say how many people work at Shadow. But a June report by the business information service Dun & Bradstreet said Shadow has about 50 employees.

Broadridge executive Justin Llewellyn-Jones said, “We are looking forward to welcoming all of Shadow’s employees to Broadridge and intend to maintain the existing management team.” He also said there are no plans to close Shadow’s Piscataway office.

Shadow president Donald Marino said becoming part of Broadridge will help his company “to better serve our clients’ evolving needs while adding the scale, deep domain expertise and technology resources that Broadridge can provide.”

Last year, Broadridge was named to the Standard & Poor’s 500 stock index in recognition of the company’s rapid growth in sales and profits in recent years.

Tuesday’s announcement came before the stock market opened.  Broadridge shares closed up $0.47, or 0.38%, to $124.90 on the New York Stock Exchange.

Correction: An earlier version of this story gave an incorrect name for Shadow Financial Systems Inc.

By James T. Madore

james.madore@newsday.comJamesTMadore

James T. Madore writes about Long Island business news including the economy, development, and the relationship between government and business. He previously served as Albany bureau chief.