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SS&C Targets FMC

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WINDSOR, Conn. (HedgeWorld.com)–Following a series of administrator-related acquisitions, SS&C Technologies Inc. is in a bidding war for Toronto-based Financial Models Co.

FMC is an investment management software company that is known for its integrated portfolio management, trading and accounting software packages. Its FMC Pages software is used for client relationship management by some hedge funds (see ).

SS&C officials confirmed that they have made a bid for FMC of C$17.70 (US$14.37) a share, which tops that of Linedata that in the last month offered C$14.85 (US$12.06) a share. The proposal rests in the outcome of pending litigation in the Ontario Court of Appeals between FMC and 1066821 Ontario Inc. owner Stamos Katotakis, who has a separate offer on the table.

The court case centers on a previous decision that said that FMC shareholders BNY Capital Corp. and William R. Waters and companies controlled by Mr. Waters are contractually obligated under the shareholders agreement to sell their shares to 1066821 Ontario Inc.

The Ontario Court of Justice decided that BNY and Mr. Waters’ shares, which represent 42% of the outstanding FMC shares, are under obligation to be sold to Linedata under significant shareholder lock-ups rather than Mr. Katotakis’s. Mr. Katotakis’s appeal to that decision will be heard on Feb. 22.

In turn, Linedata, a Paris-based software company, has extended its offering through to 5 p.m. on Feb. 25.

SS&C Chief Executive Bill Stone said in a statement, “We believe our proposal constitutes a superior proposal as defined in the Linedata acquisition agreement and stockholder lock-up agreements and have been advised that FMC and the shareholders subject to lock-up agreements with Linedata have sent notices to Linedata to this effect.”

Linedata officials have said they will evaluate their position following the outcome of the Feb. 22 court date. FMC has said it also will wait to hear from the court, but officials there have signed a confidentiality agreement with SS&C to allow its executives access to FMC’s data room.

SS&C has been actively acquiring companies in recent years, adding hedge fund administration and family office services to its software management business. The latest purchase was last March when OMR Systems, a back-office software company (see ).

Contact Bob Keane with questions or comments at: [email protected].