As it turns out, the 2014 purchase of DST Global Systems by SS&C was just an encore act: The Connecticut-based technology company announced this morning that it would pay $5.4 billion to acquire DST Systems, one of Kansas City’s biggest public companies and longtime proponent of Downtown redevelopment.
That news followed temporary suspension trading in DST’s stock on Wednesday. The deal as structured would yield $84 a share for DST stockholders in an all-cash transaction. DST Systems, founded in 1969, provides processing and servicing solutions for financial markets, and had revenues of $2.3 billion last year.
In a release announcing the acquisition, SS&C said the move would increase its scale by adding roughly 13,000 clients. “Additionally, the transaction expands SS&C’s footprint into the U.S. retirement and wealth management markets and adds 110+ million investor positions across DST’s client base,” the company said. “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.”
While the boards of both companies have already approved the sale, it remains subject to regulatory and shareholder approval. Assuming those hurdles are cleared, it could close by late this year.
“We are pleased to enter into this agreement with SS&C, which benefits DST shareholders and supports the continued success of our clients,” said DST’s chairman and CEO, Steve Hooley. “SS&C has a rich history of delivering best-in-class technology that complements DST’s existing solutions, and, as part of SS&C, we will be able to advance our extensive, multi-year strategic transformation.”