SS&C will acquire San Francisco-based company Advent Software for an enterprise value of approximately $2.7 billion in cash.
Advent has more than 4,300 customers across more than 50 countries, including asset managers, hedge funds, fund administrators, prime brokers and wealth management advisors. The firm generated revenues of $379 million in 2014.
The acquisition intends to expand the depth of expertise and technology available to SS&C clients, and marks a continuation of SS&C’s growth strategy through acquisitions.
It has completed 40 acquisitions to date, including GlobeOp in 2012 and Global Solutions in 2014.
CEO of Advent, Pete Hess, said: “This is a very exciting transaction for our shareholders, clients, and employees. I believe the combination of Advent and SS&C will create a powerful team that can take a big leap forward in the value proposition we offer the industry.”
He added: “SS&C has a rich history of delivering a leading combination of people, process, and technology that complements Advent’s existing solutions, and the additional scale and resources we will have as a united team will accelerate our ability to provide the industry with game-changing solutions for investment managers around the world.”
Bill Stone, chairman and CEO of SS&C, said: “The acquisition reinforces our focus on our clients. Advent Software, combined with SS&C’s complementary offerings in software-as-a-service, middle office services, regulatory solutions, mobile applications and financial information exchange is unmatched.”
He added: “We are excited to have Pete Hess and his team and the entire Advent community. We intend to continue our combined strengths in innovation, client focus and employee opportunity."
Both SS&C and Advent’s board of directors have unanimously approved the acquisition. Subject to approval from Advent’s stockholders and clearance from the regulatory authorities, negotiations are expected to close in Q2 this year.
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