SS&C Increases Offer Price to Acquire Mainstream Group

Rhea-AI Summary

SS&C Technologies has amended its acquisition proposal for Mainstream Group Holdings, offering A$2.76 per security, totaling an enterprise value of approximately A$406 million (US$314 million). This acquisition, aimed at obtaining 100% of Mainstream's shares, is pending approval from Mainstream's shareholders and regulators and is expected to close in Q3 2021. Mainstream provides various investment administration services globally, managing funds worth AUD $272 billion for over 176,000 investors.

Positive

• Acquisition offers synergies in investment administration services.
• Expected to enhance SS&C's market presence and client base.
• Enterprise value implies significant scale and commitment to growth.

Negative

• The acquisition is subject to shareholder and regulatory approvals, posing risks of delays.
• Integration challenges may arise post-acquisition.

WINDSOR, Conn., June 1, 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$2.76 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$406 million or approximately US$314 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. Follow SS&C on Twitter, Linkedin and Facebook.

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SOURCE SS&C

FAQ

What is SS&C Technologies' revised offer for Mainstream Group?

SS&C has increased its offer to A$2.76 per security for Mainstream Group.

What is the enterprise value of the proposed acquisition by SS&C?

The proposed acquisition has an enterprise value of approximately A$406 million (US$314 million).

When is the expected closure date for SS&C's acquisition of Mainstream?

The acquisition is expected to close in Q3 2021.

What services does Mainstream Group provide?

Mainstream provides investment administration, fund accounting, and other related services to clients worldwide.

What conditions must be met for the acquisition to proceed?

The acquisition requires approval from Mainstream shareholders and must meet regulatory conditions.