SS&C has agreed a $5.4 billion cash deal to buy DST Systems, giving a major boost to its move into the $25 trillion US retirement market.
Under a definitive agreement, SS&C will pay $84 per share, plus the assumption of debt, for DST, a provider of technology, strategic advisory and business operations outsourcing to the financial services and healthcare industries.
The Kansas City-based outfit employees more than 14,400 people and generated pro-forma revenue of $2.3 billion for the year ending 30 September.
SS&C says the deal significantly boosts its scale, with the combined company generating $3.9 billion in combined pro forma revenue and serving 13,000 clients. Importantly, DST expands SS&C's footprint into the US retirement and wealth management markets and adds more than a 110 million investor positions across DST’s client base.
SS&C has grown its business over the years through an aggressive acquisition strategy which has seen it undertake more than 40 take-overs to date, including GlobeOp in 2012, DST Global Solutions in 2014 and Advent Software in 2015.
Bill Stone, CEO, SS&C, says: "The rate of change, the technology required and the requirements of integrated solutions in the investment and wealth management space are unprecedented. The combination of SS&C and DST is an exciting opportunity and will continue to deliver solutions, globally."
Stone adds that he is "excited" to welcome DST employees and that SS&C will keep a presence in Kansas City once the deal - which is expected to generate $150 million of run-rate cost savings annually by 2020 - is completed in the third quarter, subject to DST stockholder approval and regulatory clearance.