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SS&C to acquire DST Systems for $5.4B

SS&C Technologies Holdings, Inc. and DST Systems, Inc. have entered into a definitive agreement wherein SS&C will acquire DST. 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 a value of approximately $5.4 billion.

DST is a global provider of specialized technology, strategic advisory and business operations outsourcing to the financial services and healthcare industries. DST is headquartered in Kansas City, Missouri and has more than 14,400 employees worldwide.

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The acquisition significantly increases SS&C’s scale, with approximately $3.9 billion in combined pro forma revenue and 13,000 clients. Additionally, it expands SS&C’s footprint into the US retirement and wealth management markets and reportedly adds 110-plus million investor positions across DST’s client base.

The combination leverages SS&C’s market leading software platform for institutional and alternative asset managers to drive increased automation and efficiency across wealth management account servicing. The transaction also represents a continuation of SS&C’s strategy of adding talented people and technology through acquisitions. This strategy, combined with its continued investment in its software stack, has created one of the world’s leaders in software enabled services.

“The rate of change, the technology required and the requirements of integrated solutions in the investment and wealth management space are unprecedented," said Bill Stone, chairman and chief executive officer of SS&C. "The combination of SS&C and DST is an exciting opportunity and will continue to deliver solutions, globally. The combination 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,”

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