Innovative Financial Technology to Enhance BlackRock’s Risk and Cash
Management Capabilities to Address Clients’ Evolving Needs
NEW YORK--(BUSINESS WIRE)--
BlackRock, Inc. (NYSE: BLK) has entered into a definitive agreement to
acquire Cachematrix, a leading provider of financial technology which
simplifies the cash management process for banks and their corporate
clients in a streamlined, open-architecture platform. Cachematrix
supports approximately $200 billion in client assets through
relationships with many of the world’s largest banks and asset managers.
Cachematrix enables financial institutions to provide corporate clients
with a portal for allocating cash to a variety of money market funds and
direct cash instruments. Corporate clients are also able to seamlessly
analyze, perform compliance checks and generate detailed reports for
their cash investments on the Cachematrix platform.
BlackRock is one of the most experienced and largest cash management
providers in the world, managing approximately $390 billion* in cash
management assets for corporations, banks, foundations, insurance
companies and public funds. The acquisition of Cachematrix builds on
BlackRock’s momentum in cash management, including the recent transfer
of investment responsibility for more than $80 billion in cash
management assets from Bank of America Global Capital Management to
BlackRock. The Cachematrix acquisition is part of BlackRock’s strategy
to invest in scalable technology solutions that leverage its global
platform for the benefit of clients and shareholders.
The acquisition will add a new dimension to BlackRock’s global liquidity
management capabilities. BlackRock will ultimately develop a
consolidated interface that combines Cachematrix’s functionality,
Aladdin’s analytics and BlackRock’s world class investment expertise,
creating a unified client experience that simplifies the movement of
cash off corporations’ balance sheets and into more productive
investment strategies. With this interface, BlackRock will seek to help
existing bank clients augment their ability to serve their corporate
cash clients’ evolving needs and grow the firm’s business to include new
bank clients who are looking to expand into the corporate cash
management space, with robust operational, analytical and investment
capabilities.
“Regulatory changes in both the US and Europe have fundamentally changed
the needs of cash investors. In addition to world class products, cash
investors now require new tools to streamline liquidity management and
better manage risk,” said Tom Callahan, Head of BlackRock's Global Cash
Management Business. “Building on BlackRock’s strength and scale in the
cash management space and leadership position in technology and risk
management, this transaction reinforces our commitment to adapt our
business for clients’ evolving needs, and to be the leading provider of
comprehensive cash management solutions.”
“Joining forces with BlackRock will enhance our ability to deliver
technology solutions that simplify cash management for banks and their
corporate clients,“ said George Hagerman, Chairman and Founder of
Cachematrix, “Together we will broaden our reach with best-in-class
financial technology and world-class investment products to help clients
address their liquidity needs.”
This strategic acquisition builds upon BlackRock’s global cash
management expertise and is an extension of BlackRock’s
business-to-business model of offering scalable risk management,
technology, and advisory services to a broad range of institutions.
BlackRock’s partner firms are increasingly looking to technology to
improve their ability to meet their clients’ needs. BlackRock’s platform
of financial technology solutions includes Aladdin, iRetire, Aladdin
Risk for Wealth Management and FutureAdvisor.
BlackRock has more than 40 years of experience managing cash through
multiple interest rate cycles and varying market conditions, offering
its clients a time-tested investment approach and a variety of solutions
designed to meet the needs of today’s cash investor.
The transaction is not expected to be material to the Company’s
consolidated financial condition or results of operations and is subject
to customary closing conditions. The transaction is expected to close in
the third quarter of 2017. Terms were not disclosed.
*As of March 31, 2017
About BlackRock
BlackRock is a global leader in investment management, risk management
and advisory services for institutional and retail clients. At March 31,
2017, BlackRock’s AUM was $5.4 trillion. BlackRock helps clients around
the world meet their goals and overcome challenges with a range of
products that include separate accounts, mutual funds, iShares®
(exchange-traded funds), and other pooled investment vehicles. BlackRock
also offers risk management, advisory and enterprise investment system
services to a broad base of institutional investors through BlackRock
Solutions®. As of March 31, 2017, the firm had
approximately 13,000 employees in more than 30 countries and a major
presence in global markets, including North and South America, Europe,
Asia, Australia and the Middle East and Africa. For additional
information, please visit the Company’s website at www.blackrock.com
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View source version on businesswire.com: http://www.businesswire.com/news/home/20170627006055/en/
Media:
BlackRock, Inc.
Tara McDonnell, 212-810-5337
Tara.McDonnell@BlackRock.com
or
Investor
Relations:
BlackRock, Inc.
Samantha Tortora, 212-810-5397
Samantha.Tortora@BlackRock.com
Source: BlackRock, Inc.