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SS&C may offer USD 5bn for DST: Reuters
Posted on Thursday, 11 January 2018 11:18
Shares in DST Systems finished higher yesterday following a Reuters report suggesting SS&C Technologies is in advanced discussions to take the Missouri-based financial and healthcare technology company private for USD 5.00 billion.
People with knowledge of the situation told the news provider the negotiations could lead to an announcement this week regarding a cash bid of USD 84.00 per share.
However, as usual, the sources, who declined to be named as the process is still confidential, cautioned the discussions could come to nothing.
Peter Heckman, a research analyst at DA Davidson, told Reuters SS&C has driven growth through acquisitions in the past.
He added DST would be a good fit, considering about 80.0 per cent of its revenue came from investment fund data processing and administration.
The company offers transaction processing; account opening and maintenance; reconciliation of trades, positions and cash; corporate actions; regulatory reporting and compliance functions; and tax reporting.
Within the healthcare segment, it provides claims adjudication; benefit management; care management; business intelligence; and other ancillary services.
Investors pushed up stock in the Kansas City-based data management, business processing and customer communications outsourcing services provider to as high as USD 81.20 during trading, almost matching the offer.
Gains were pared to USD 79.89, some 22.6 per cent higher, and a market capitalisation of USD 4.81 billion by the time the bell rang yesterday.
In comparison, Connecticut-based SS&C ended 12.8 per cent up at USD 47.69 and a value of USD 9.82 billion.
Zephyr, the M&A database published by Bureau van Dijk, shows that if it goes ahead, the deal would be the company’s largest to date and the biggest since the acquisition of Advent Software in 2015 for USD 2.63 billion.
According to Zephyr, there have already been eight public takeovers announced globally so far this calendar year, including the acquisitions of Scana for USD 14.60 billion and Com Hem for USD 3.29 billion.
© Zephus Ltd