Windsor-based investment software and services provider SS&C Technologies says it will not match the latest rival offer for an Australian fund administrator it has been attempting to acquire for the last four months.
In a statement released Thursday, the company announced it is walking away from its bidding war with Bermuda-based Apex Group.
“SS&C has decided to not exercise its matching right in respect of its bid for Mainstream,” said SS&C Chairman and CEO Bill Stone. “We began this journey after Mainstream’s board had accepted a AUS$1.20 bid on March 12th. The most recent bid received by Mainstream was $2.80, a 133% increase to the original bid, and we congratulate the board of Mainstream for maximizing shareholder value.”
Mainstream confirmed Friday that SS&C had missed its deadline to submit a new counter-offer and said it would continue to “pursue discussions” with Apex.
SS&C first publicly announced a conditional plan to acquire Mainstream in early April. At the time, Stone said Mainstream’s fund and superannuation services complemented SS&C’s existing administrative services in Australia and around the world and demonstrated “great revenue growth potential.”
According to documents filed with the Australian Securities Exchange, SS&C outbid business services provider Vistra but went back and forth with Apex several times.
Most recently, on May 31, SS&C submitted a bid of $2.76 per share, temporarily besting Apex’s price of $2.75 per share. Apex entered its bid of $2.80 on June 10.
Mainstream has over 330 employees and eight locations, with offices in Australia, the U.S., Hong Kong, Singapore, Ireland, Malta, the U.K. and the Cayman Islands.
