SS&C Advances Offer on Acquisition of Mainstream Group

Rhea-AI Summary

SS&C Technologies Holdings, Inc. (Nasdaq: SSNC) has amended its agreement to acquire Mainstream Group Holdings Limited (ASX: MAI) for A$2.61 per share, reflecting an enterprise value of approximately A$384 million (US$296 million). The acquisition is subject to approval from Mainstream shareholders and regulatory bodies, with a target closure in Q3 2021. Mainstream provides investment administration and related services globally, managing 1,364 funds and over 176,000 investors, with A$272 billion in funds under administration.

Positive

• Strategic acquisition expands SS&C's service offerings in investment administration.
• Mainstream's established global presence can enhance SS&C's market reach and client base.
• Expected completion in Q3 2021 provides a timeline for integration and potential synergy realization.

Negative

• Acquisition contingent on shareholder and regulatory approval could introduce delays.
• The transaction value includes net debt, potentially impacting SS&C's financial leverage.

WINDSOR, Conn., May 14, 2021 /PRNewswire/ -- SS&C Technologies Holdings, Inc. (Nasdaq: SSNC) today announced that it has amended the Scheme Implementation Deed with Mainstream Group Holdings Limited (ASX: MAI, "Mainstream") to provide for an acquisition by SS&C of 100% of the shares and outstanding equity rights in Mainstream for A$2.61 per security pursuant to a scheme of arrangement. In the absence of a superior proposal, and subject to the independent expert concluding that the revised scheme is in the best interests of Mainstream shareholders, being customary carve-outs, the board of directors of Mainstream intends to support the revised scheme of arrangement on that basis.

Terms of the proposed acquisition imply an enterprise value for Mainstream of approximately A$384 million or approximately US$296 million (including transaction costs and net debt). The purchase will be subject to customary conditions, including approval by Mainstream shareholders, the relevant Australian court and certain regulatory approvals, and is expected to close in the third quarter of 2021.

Mainstream is a provider of investment administration, middle office, fund accounting, superannuation administration, share registry and unit registry (transfer agency) services to leading fund managers and superannuation funds, family offices and dealer groups. The company serves clients globally through its offices in Australia, Hong Kong, Singapore, Ireland, Malta, Isle of Man, the Cayman Islands and the U.S.

Mainstream is being advised by Miles Advisory Partners as financial adviser and Maddocks as legal adviser.

SS&C is being advised by Citi as financial adviser and Gilbert + Tobin as legal adviser.

About Mainstream Group Holdings
Mainstream Group Holdings Limited (ASX: MAI) provides fund and superannuation administration services underpinned by investment in people, processes and technology. As at March 2021, Mainstream provides administration services to 1,364 funds and more than 176,000 investors with funds under administration of AUD $272 billion. Mainstream employs 330 people, with operations in Australia, Singapore, Hong Kong, the United States, the Isle of Man, Malta, Ireland and the Cayman Islands. For more information, please visit: https://www.mainstreamgroup.com.

About SS&C Technologies
SS&C is a global provider of services and software for the financial services and healthcare industries. Founded in 1986, SS&C is headquartered in Windsor, Connecticut, and has offices around the world. Some 18,000 financial services and healthcare organizations, from the world's largest companies to small and mid-market firms, rely on SS&C for expertise, scale, and technology.

Additional information about SS&C (Nasdaq:SSNC) is available at www.ssctech.com.

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SOURCE SS&C

FAQ

What is the acquisition value of Mainstream by SSNC?

The acquisition is valued at A$384 million (approximately US$296 million).

When is SSNC expected to complete the acquisition of Mainstream?

The acquisition is anticipated to close in the third quarter of 2021.

What services does Mainstream provide?

Mainstream offers investment administration, fund accounting, and related services to fund managers and superannuation funds.

What conditions must be met for the acquisition of Mainstream to proceed?

The acquisition requires approval from Mainstream shareholders and relevant regulatory bodies.