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SS&C Tech To Buy DST Systems For Enterprise Value Of About $5.4 Bln

SS&C Technologies Holdings Inc. (SSNC) said that it agreed to buy DST Systems Inc. (DST) in an all-cash transaction for $84 per share plus assumption of debt, equating to an enterprise value of about $5.4 billion.

SS&C expects $150 million of run-rate cost savings annually, achieved by 2020. The transaction is expected to be immediately accretive to its adjusted earnings per share before synergies, and is expected to result in mid-teens earnings growth in 2019.

SS&C plans to fund the acquisition and refinance existing debt with a combination of debt and equity.

Both SS&C's and DST's Board of Directors have approved the transaction, and it is expected to close by the third quarter of this year. The transaction is subject to DST's stockholder approval, clearances by the relevant regulatory authorities and other customary closing conditions.

DST is a provider of specialized technology, strategic advisory and business operations outsourcing to the financial services and healthcare industries. Headquartered in Kansas City, Missouri, with more than 14,400 employees worldwide, DST generated pro forma revenue of $2.3 billion for the 12 months ended September 30, 2017.

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