New York (HedgeCo.Net) – SS&C Technologies Holdings has acquired hedge fund software provider Advent Software, Inc. SS&C has 40 acquisitions under their belt so far, including GlobeOp in 2012 and DST Global Solutions in 2014.
Under the terms of the agreement, SS&C will purchase Advent for an enterprise value of approximately $2.7 billion in cash, equating to $44.25 per share plus assumption of debt.
“The transaction capitalizes on a broad trend: global financial services customers’ increased interest in outsourcing solutions.” SS&C said in a press release. “Advent increases SS&C’s business and geographical diversification and scale and adds a stable and attractive revenue base, as demonstrated by its 90% recurring revenue rates over the last five years.”
“The acquisition of Advent is a defining moment in the investment technology, services and support industry. SS&C is acquiring a pre-eminent business in the financial technology industry and this is an acceleration in the progression to cloud technology,” said Bill Stone, Chairman and Chief Executive Officer of SS&C. “One Advent product, Geneva®, already has 2,400 SS&C personnel using it everyday.”
SS&C approximates $45 million of annual savings to be achieved by the end of three years, and SS&C expects meaningful revenue synergies to be derived over time.
SS&C plans to fund the acquisition and refinancing of existing debt with $3.0 billion of debt financing and cash on hand and approximately $400 million of equity. Directors have unanimously approved the transaction, which is expected to close in the second quarter of this year, subject to Advent stockholder approval, clearances by the relevant regulatory authorities and other customary closing conditions.
Advent has more than 4,300 customers including asset managers, hedge funds, fund administrators, prime brokers, family offices and wealth management advisory firms, located across more than 50 countries worldwide. Headquartered in San Francisco, California, with more than 1,200 employees worldwide, Advent generated revenues of $397 million for the 12 months ended December 31, 2014.
Alex Akesson
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