SS&C's approach to mergers and acquisitions starts with a question that goes beyond the next deal: What will our clients need next?
For four decades, SS&C has used M&A to build capabilities ahead of changes in financial markets and technology. That means looking beyond current demand to identify where the industry is heading, then developing or acquiring the expertise needed to help clients navigate that shift.
Bill Stone, SS&C's founder and CEO, discussed that approach in a recent episode of the M&A Science podcast with Kisan Patel. His examples, from SS&C's shift toward the buy side in the late 1980s to our acquisition of Blue Prism decades later, illustrate a consistent strategy of anticipating the direction of the market and building for it before the need becomes obvious.
Building for What's Next
The 2022 acquisition of Blue Prism is a clear example. The transaction brought roughly 1,400 specialists in artificial intelligence, robotic process automation and natural language processing into SS&C. Their expertise strengthened the company's capabilities in areas that have become increasingly important as financial services firms look for ways to automate operations and manage growing complexity. Subsequent acquisitions have added experts in tokenization and other emerging financial technologies.
The value of those acquisitions goes beyond adding new technology to SS&C's portfolio. We have deployed thousands of bots in our own operations, using our scale and complexity as a testing ground for the technology before extending those capabilities to clients.
That reflects a broader principle behind SS&C's M&A strategy. Rather than waiting for an emerging technology or market development to become an established client demand, SS&C builds expertise early, develops practical experience and positions that capability for clients as the need takes shape.
Anticipating Shifts in the Market
That approach predates today's focus on artificial intelligence and automation. In the late 1980s, Stone recognized that influence on Wall Street was shifting from sell-side firms toward buy-side institutions, including asset managers, insurance companies, pension plans, hedge funds and private equity firms. The sharp market decline in October 1987 accelerated that shift, as the market for sell-side systems contracted almost overnight. SS&C responded by shifting focus toward the emerging buy-side market rather than waiting for the sell-side business to recover. The decision illustrates the same discipline that has guided our M&A strategy ever since. SS&C pays attention to where financial markets and technology are moving, and builds the capabilities needed to support clients when they get there.
With more than 100 acquisitions since Stone founded SS&C in 1986, our M&A program has grown significantly. But the number of transactions is less important than the rationale behind them. The objective is not simply to acquire companies because they are available or attractively priced. It is to add expertise and capabilities that can strengthen SS&C's ability to serve clients as their businesses evolve.
What That Means for Clients
For clients, the benefit is straightforward. They do not have to wait for an emerging need to become a fully formed technology requirement before their technology partner can respond. SS&C is working to anticipate those needs and build the infrastructure, expertise and products to address them in advance.
That could mean preparing for a shift in market structure, supporting a new asset class or applying automation and artificial intelligence to increasingly complex operations. In each case, the goal is to understand where the industry is heading, invest in the capabilities that will matter and put that expertise to work before demand reaches its peak.
Stone's conversation with Patel offers a deeper look at how that philosophy translates into practice, including how he evaluates potential acquisitions, finances deals without diluting ownership and approaches some of SS&C's most significant transactions.