Just this morning we announced that SS&C has entered into an agreement to acquire DST Systems. You can read all the financial details about the transition in our press release, but in short, SS&C will purchase DST in an all-cash transaction for $84 per share, equating to an enterprise value of approximately $5.4 billion.
For those of you who aren’t familiar with DST, they are a global provider of specialized technology, strategic advisory, and business operations outsourcing to the financial services and healthcare industries. DST provides solutions through a unique blend of industry knowledge and experience, technological expertise, and service excellence to clients across asset management, brokerage, retirement and healthcare. DST is headquartered in Kansas City, Missouri, with more than 14,400 employees worldwide.
This is an incredibly exciting transaction that significantly increases SS&C’s scale. With a combined $3.9 billion in revenue and 13,000 clients, the acquisition 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 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. We will, together, continue to build on a relationship since we acquired DST Global back in 2014. We look forward to partnering with our customers,” said Bill Stone, Chairman and Chief Executive Officer of SS&C. “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.”
Together, SS&C and DST can offer a truly unique business value proposition for our clients:
- DST can enhance the value of the SS&C offering by addressing one of the most important segments in financial services – wealth management. In conjunction with SS&C GlobeOp and Advent’s Black Diamond, clients can manage their wealth management business with SS&C, including 40 Act Funds, registered products and interval funds, etc.
- The combination of SS&C and DST will offer one of the industry's largest pool of compliance, regulatory, data & analytics and digital transformation capabilities.
- DST’s infrastructure will enhance SS&C’s cybersecurity and privacy protection.
- Significantly enhance our transfer agency and investor services footprint.
- Deliver to the combined client base expanded web portal and mobility solutions.
To learn more about the DST acquisition, check out the acquisition resources page.
The proposed transaction is subject to closing conditions, including regulatory, shareholder and other approvals. Until the deal closes, SS&C and DST will continue to operate independently.
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