January 12, 2018

Windsor's SS&C Technologies to buy Missouri firm for $5.4B

HBJ file photo
HBJ file photo
SS&C Chairman and CEO Bill Stone.

Windsor financial-software and services vendor SS&C Technologies says it will acquire Kansas City, Mo., financial services and healthcare technology firm DST for $5.4 billion.

The deal will cost SS&C about $84 per share in cash, as well an assumption of debt, the two companies said.

DST provides specialized technology, strategic advisory and business operations outsourcing to the financial services and healthcare industries.

Access to DST's retirement and wealth management services will accelerate SS&C's move into the $25 trillion U.S. retirement market, the companies said.

With more than 14,400 employees worldwide, DST generated revenue of $2.3 billion for the 12 months ended Sept. 30, 2017. The proposed deal increases SS&C's scale, with approximately $3.9 billion in combined revenue and 13,000 clients, said Bill Stone, SS&C's CEO.

"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," he said.

Steve Hooley, DST CEO, said that as part of SS&C, DST will be able to advance its plans for an "extensive, multi-year strategic transformation." He did not detail those plans.

Both SS&C's and DST's boards of directors have approved the deal, which is expected to close by the third quarter of this year, pending DST's stockholder approval, clearances by regulators and other closing conditions.

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