Windsor’s SS&C Technologies Holdings Inc. said Monday that it has agreed to pay $2.7 billion to acquire a California company that makes software for investment management firms.
SS&C will pay $44.25 per share for publicly traded Advent Software Inc., which is headquartered in San Francisco.
SS&C said it will fund the deal with $3 billion in debt financing and cash as well as $400 million of equity.
The deal, expected to close by June, would create $45 million in cost synergies within three years, SS&C said. The company expects the acquisition to help it deliver earnings per share between $3.05 and $3.15 in fiscal year 2016.
For comparison, analysts are expecting EPS of $2.35 when SS&C announces its 2014 earnings Feb. 12.
Bill Stone, SS&C’s CEO and chairman, said in a statement that the deal is “a defining moment in the investment technology, services and support industry.”
He said SS&C is looking to capitalize on a trend of its global financial services customers’ interest in outsourcing solutions.
“SS&C is acquiring a pre-eminent business in the financial technology industry and this is an acceleration in the progression to cloud technology,” Stone said.
Stone said that 2,400 of SS&C’s employees already use Advent’s Geneva portfolio management software every day.
Advent has more than 4,300 customers and 1,200 employees, SS&C said. The company had $397 million in revenue last year.
The Advent deal follows a series of acquisitions SS&C has completed over the past several years. Most recently, it acquired a subsidiary of DST Systems for $95 million.
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