SS&C signs $5.4bn DST Systems acquisition
Written by Chris Lemmon
Financial services software firm SS&C has announced that it agreed to purchase technology firm DST Systems in an all-cash transaction for $84 per share plus assumption of debt, equating to a value of approximately $5.4 billion.
The transaction significantly increases the scale of SS&C, and expands the firm’s footprint into the US retirement and wealth management markets. The combination leverages SS&C’s software platform for institutional and alternative asset managers to drive increased automation and efficiency across wealth management services.
Bill Stone, chairman and chief executive officer at SS&C, said: “The rate of change, the technology required and the requirements of integrated solutions in the investment and wealth management space are unprecedented. The combination of SS&C and DST is an exciting opportunity and will continue to deliver solutions, globally. We will, together, continue to build on the relationship since we acquired DST Global Solutions in 2014.
“We are also excited to have the DST employees from around the world join the SS&C team and look forward to having a continued local presence in Kansas City,” he continued. “Further, we look forward to partnering with DST’s customers. The combination will position us to capitalize on the demand for outsourcing in financial services and better enable our clients to address increasing competitive and regulatory pressures.”
Steve Hooley, chairman, president and CEO of DST, added: “We are pleased to enter into this agreement with SS&C, which benefits DST shareholders and supports the continued success of our clients.
“SS&C has a rich history of delivering best-in-class technology that complements DST’s existing solutions, and, as part of SS&C, we will be able to advance our extensive, multi-year strategic transformation. We thank all of our employees around the world for working hard to make this compelling combination possible.”