SS&C Technologies Holdings announced that it has entered into a definitive agreement to acquire DST Systems.
Under the terms of the agreement, SS&C will purchase DST in an all-cash transaction for $84 per share plus assumption of debt – equating to approximately $5.4 billion.
Headquartered in Kansas City, Missouri, with more than 14,400 employees worldwide, DST — a global provider of specialized technology, strategic advisory and business operations outsourcing to the financial services and health care industries — generated $2.3 billion in revenue for the 12 months ended Sept. 30, 2017.
According to Bill Stone, chairman and chief executive officer of SS&C, the DST employees from around the world will join the SS&C team and have a continued local presence in Kansas City.
The transaction significantly increases SS&C’s scale, with approximately $3.9 billion in combined pro forma revenue and 13,000 clients. Additionally, the transaction expands SS&C’s footprint into the U.S. retirement and wealth management markets and adds more than 110 million investor positions across DST’s client base.
The combination leverages SS&C’s software platform for institutional and alternative asset managers to drive increased automation and efficiency across wealth management account servicing.
According to Stone, the combination of SS&C and DST 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.”