SS&C Increases Offer on Acquisition of Mainstream Group

Rhea-AI Summary

SS&C Technologies has amended its Scheme Implementation Deed to acquire 100% of Mainstream Group for A$2.66 per security, valuing Mainstream at approximately A$392 million (or US$306 million). The acquisition is subject to shareholder approval, court consent, and regulatory approvals, with an anticipated closing in Q3 2021. Mainstream provides investment administration services globally, serving over 176,000 investors with A$272 billion in assets under administration.

Positive

• Strategic acquisition of Mainstream strengthens SS&C's market position in investment administration services.
• Potential to enhance revenue growth through Mainstream's established client base and global presence.

Negative

• The acquisition is contingent on multiple approvals, which could introduce delays.
• Integration of Mainstream's operations may present challenges and require significant resources.

WINDSOR, Conn., May 25, 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$2.66 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$392 million or approximately US$306 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 deal value for SSNC's purchase of Mainstream Group?

The acquisition deal is valued at approximately A$392 million (US$306 million).

When is SSNC's acquisition of Mainstream expected to close?

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

What services does Mainstream Group provide?

Mainstream provides investment administration, fund accounting, superannuation administration, and share registry services.

What approvals are needed for SSNC's acquisition of Mainstream?

The acquisition requires approval from Mainstream shareholders, the relevant Australian court, and certain regulatory approvals.

How many investors does Mainstream serve?

Mainstream serves over 176,000 investors.