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  "documentTitle": "Broadridge Financial Solutions, Inc. (BR)",
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  "authorName": "Ben Axler",
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  "presentationDate": "2022-09-28 00:00:00",
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      "text": "It's evident that blockchain technology has the ability to disrupt many middlemen-type businesses such as Broadridge. It's open to debate how the distributed ledger will directly impact Broadridge but in our opinion it's a very large risk factor that needs to be taken into consideration especially when Broadridge does not appear to have made a very large financial commitment to investing in Blockchain relative to the billions being invested into the space.",
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      "text": "It's evident that blockchain technology has the ability to disrupt many middlemen-type businesses such as Broadridge.",
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      "text": "Spruce Point Concerns",
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      "text": "Broadridge Risk Factor & CFO Comment",
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      "text": "To the best of our knowledge the only acquisition BR has completed in blockchain technology was Inveshare for ~$140M back in 2016. To the best of our knowledge the only investment BR has completed in blockchain was with privately held Digital Asset Holding. Original investment was in 2016 alongside 12 other financial service firms. BR does not disclose R&D expense but they do report annual purchases of software and capitalized development cost. Since 2018, BR has spent ~$172M. Even if you assume all of the $172M was deployed for blockchain, plus Inveshare and Digital Asset it's a tiny investment into a potential disintermediation threat. Digital Asset alone has raised ~$270M since inception. VC firms invested $25.2B in blockchain companies in 2021 alone. 40 public companies invested another $6B in blockchain companies between Sept. '21 and June '22. Even BR's own press release acknowledges the capital being invested: Aite Group forecasts that capital markets firms will spend about $400 million annually by 2019. Much larger technology companies than BR are already in the space. Nuarca which is owned by IBM has blockchain technology for proxy voting.",
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      "text": "If we are unable to respond to the demands of our existing and new clients, or adapt to technological changes or advances, our business and future growth could be impacted... In addition, we run the risk of disintermediation due to emerging technologies, including distributed ledger or blockchain technologies.",
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      "kind": "quote",
      "text": "Former CFO Young at Evercore Conf. 3/3/20 commenting on Blockchain: \"And by the way, it's a good long-term investment and arguably our most valuable franchise to say we're going to be here for a long term...\"",
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      "text": "And by the way, it's a good long-term investment and arguably our most valuable franchise to say we're going to be here for a long term and a little bit of a message to any would-be entrants to say we're willing to invest big money. And we -- as you know, we spent $140 million on buying a technology player, 3 or 4 years ago to help us get there faster. So we're very deliberate and committed to investing in our platform to make sure that it's good governance today, tomorrow and many years to comment. And that's on digital ledger, then we're ready for it. — Former CFO Young at Evercore Conf. 3/3/20",
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      "text": "Source: Broadridge 10K & Evercore Conf. Transcript 1) PaymentsDive.com 2) BlockData 3) Broadridge PR 4) IBM",
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