The deal, which is being brokered through Carlyle’s Sunshine Acquisition Corp affiliate, is expected to close in the fourth quarter. Washington DC-based Carlyle will pay around $37.25 per share in cash for SS&C – which is a 13% premium over its closing price on Wednesday and a 16% premium over the last 30 day closing prices. The company says it will use debt financing from Wachovia, JPMorgan and Bank of America to help fund the deal.
SS&C, which is based in Windsor, Connecticut, generated sales of $96m last year. The company’s software is predominantly used by hedge funds, asset management firms, insurers and banking institutions. SS&C officials are calling the acquisition another chapter in the company’s history.
Carlyle, which has $30bn in assets under its management, has been eyeing the hedge-fund software and services market for some time. The company says it will work closely with SS&C to build up a thriving software and administrative services business around hedge fund management through internal development and possibly more acquisitions.
Hedge funds are estimated to number over 8,000 – comprising over $1 trillion of assets.
The company’s stock soared by 10.5% ($3.46) to $36.46 on Nasdaq yesterday afternoon following Carlyle’s takeover bid. The stock is now at 52-week high and has doubled from September’s low of $15.81.
SS&C’s CEO William Stone currently owns 38% of the SS&C.
Yesterday SS&C reported second quarter profits of $6.6m against revenue up 66% to $40.7m.
