SS&C Technologies, a provider of financial services software and software-enabled services, has agreed to buy DST Systems.
Under the terms of the agreement, as announced on January 11, 2018, an enterprise value of DST is approximately $5.4bn, including assumption of debt. The company said it has entered into a definitive agreement to acquire DST, provider of proprietary technology-based information processing and servicing solutions.
Headquartered in Kansas City, Missouri DST provides specialised technology, strategic advisory and business operations outsourcing to the financial services and healthcare industries. It generated pro forma revenue of $2.3bn for the 12 months ended September 30, 2017.
The purchase will increase SS&C’s scale, with approximately $3.9bn in combined pro forma revenue and 13,000 clients. Additionally, it will expand SS&C’s footprint into the US 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.
Bill Stone, chairman and CEO of SS&C, said “The combination will position us to capitalise on the demand for outsourcing in financial services and better enable our clients to address increasing competitive and regulatory pressures.
“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.
SS&C provides solutions across a range of industries, including alternative investments, wealth management, property management, asset management, insurance, REIT accounting & administration, banking & lending and property management.
Through its products, the company offers solutions for accounting, data management, employee benefits administration, performance measurement and attribution, portfolio management, trading and settlement, reconciliation & data collection and trading solutions.
It also offers compliance, risk management and regulatory reporting solutions and services to streamline processes and free staff to be more productive. For compliance, the company’s solutions enable users to turn policies into automated processes. It also enables users to create rules and set alerts to ensure they are never in breach of internal policies, regulations or client mandates.
For risk management, SS&C’s streamlined, web-based risk management service withstands investor due diligence and enables users to give clients the visibility they demand.
The company’s automated tools and team of experts also help reduce regulatory risk, conserve staff resources and deliver accurate, timely and compliant reports. Its solutions cover both local and global regulations across multiple jurisdictions and regimes, including US SEC Form PF, FATCA, AIFMD, EMIR, MIFID and more.
Copyright © 2018 RegTech Analyst
