BlackRock to Acquire Cachematrix
Innovative Financial Technology to Enhance BlackRock’s Risk and Cash Management Capabilities to Address
Clients’ Evolving Needs
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 | Twitter: @blackrock_news | Blog: www.blackrockblog.com | LinkedIn: www.linkedin.com/company/blackrock
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
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