SS&C to Acquire DST Systems
January 12, 2018

SS&C Technologies Holdings, a global provider of financial services software and software-enabled services, is to buy DST Systems, a provider of proprietary technology-based information processing and servicing solutions. SS&C will purchase DST in an all-cash transaction for $84 per share plus assumption of debt, equating to an enterprise value of approximately US$5.4 billion.

SS&C says the transaction significantly increases its scale, with approximately $3.9 billion in combined pro forma revenue and 13,000 clients. Additionally, the transaction expands its footprint into the US retirement and wealth management markets and adds 110+ 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.

SS&C says the transaction also represents a continuation of its proven strategy of adding talented people and technology through acquisitions.

Said Bill Stone, Chairman and Chief Executive Officer of SS&C: "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 says it expects $150 million of run-rate cost savings annually, achieved by 2020. The transaction is expected to be immediately accretive to its adjusted earnings per share before synergies, and is expected to result in mid-teens earnings growth in 2019.

SS&C plans to fund the acquisition and refinance existing debt with a combination of debt and equity. For the 12 months ended September 30, 2017, consolidated EBITDA (earnings before interest, tax, depreciation and amortization) for the combined pro forma entity is expected to be approximately $1.3 billion, including synergies. SS&C expects pro forma net leverage to be in the low 5x area at closing and will deleverage by approximately 0.7x per year.

Both SS&C's and DST's Board of Directors have approved the transaction, and it is expected to close by the third quarter of this year. The transaction is subject to DST's stockholder approval, clearances by the relevant regulatory authorities and other customary closing conditions.

Credit Suisse and Morgan Stanley acted as financial advisors and Davis Polk & Wardwell acted as legal advisor to SS&C. Credit Suisse and Morgan Stanley have provided fully committed debt financing for the transaction.

BofA Merrill Lynch acted as financial advisor and Skadden, Arps, Slate, Meagher & Flom acted as legal advisor to DST.





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SS&C Technologies Holdings, a global provider of financial services software and software-enabled services, is to buy DST Systems, a provider of proprietary technology-based information processing and servicing solutions. SS&C will purchase DST in an all-cash transaction for $84 per share plus assumption of debt, equating to an enterprise value of approximately US$5.4 billion.

SS&C says the transaction significantly increases its scale, with approximately $3.9 billion in combined pro forma revenue and 13,000 clients. Additionally, the transaction expands its footprint into the US retirement and wealth management markets and adds 110+ 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.

SS&C says the transaction also represents a continuation of its proven strategy of adding talented people and technology through acquisitions.

Said Bill Stone, Chairman and Chief Executive Officer of SS&C: "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 says it expects $150 million of run-rate cost savings annually, achieved by 2020. The transaction is expected to be immediately accretive to its adjusted earnings per share before synergies, and is expected to result in mid-teens earnings growth in 2019.

SS&C plans to fund the acquisition and refinance existing debt with a combination of debt and equity. For the 12 months ended September 30, 2017, consolidated EBITDA (earnings before interest, tax, depreciation and amortization) for the combined pro forma entity is expected to be approximately $1.3 billion, including synergies. SS&C expects pro forma net leverage to be in the low 5x area at closing and will deleverage by approximately 0.7x per year.

Both SS&C's and DST's Board of Directors have approved the transaction, and it is expected to close by the third quarter of this year. The transaction is subject to DST's stockholder approval, clearances by the relevant regulatory authorities and other customary closing conditions.

Credit Suisse and Morgan Stanley acted as financial advisors and Davis Polk & Wardwell acted as legal advisor to SS&C. Credit Suisse and Morgan Stanley have provided fully committed debt financing for the transaction.

BofA Merrill Lynch acted as financial advisor and Skadden, Arps, Slate, Meagher & Flom acted as legal advisor to DST.



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