SS&C Moves Forward on Acquisition of Mainstream Group

Rhea-AI Summary

SS&C Technologies announced its acquisition of Mainstream Group Holdings for A$2.00 per share, resulting in an enterprise value of approximately A$296 million (US$225 million). This acquisition follows the expiration of Vistra Group's matching rights, allowing SS&C's Scheme Implementation Deed to take effect. Mainstream provides investment administration services globally, supporting over 1,200 funds and 157,000 investors with A$224 billion in assets under administration. The acquisition is set to enhance SS&C's offerings and is expected to close in Q3 2021, pending regulatory approvals.

Positive

• Acquisition enhances SS&C's product suite and market reach.
• Mainstream adds substantial client base and assets under administration, totaling AUD 224 billion.
• Potential for significant synergies and operational efficiencies post-acquisition.

Negative

• Acquisition subject to shareholder and regulatory approvals, which may introduce delays.
• Integration challenges may arise due to differing corporate cultures and operational systems.

WINDSOR, Conn., April 19, 2021 /PRNewswire/ -- SS&C Technologies Holdings, Inc. (Nasdaq: SSNC) today announced that the board of directors of Mainstream Group Holdings Limited (ASX: MAI, "Mainstream") has unanimously recommended an acquisition by SS&C of 100% of the shares and outstanding equity rights in Mainstream for A$2.00 per security pursuant to a scheme of arrangement (in the absence of a superior offer and subject to an independent expert concluding that the SS&C Proposal is in the best interests of the Mainstream shareholders). The matching rights of Vistra Group in connection with its prior Scheme Implementation Deed have now expired and Mainstream is proceeding to terminate that agreement with Vistra Group in accordance with its terms. SS&C's Scheme Implementation Deed will then become fully operative per its terms.

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.

"We are very pleased the Mainstream Board is unanimously recommending our superior proposal. Mainstream management and employees have built a strong business with a world-class customer base. Together, we will be well-positioned to serve our customers with an enhanced product suite, offer exciting opportunities to our employees, and create value for our shareholders," said Bill Stone, Chairman and Chief Executive Officer.

Terms of the proposed acquisition imply an enterprise value for Mainstream of approximately A$296 million or approximately US$225 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 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 December 2020, Mainstream provides administration services to 1,202 funds and more than 157,000 investors with funds under administration of AUD $224 billion. Mainstream employs 305 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 Group Holdings by SS&C?

The acquisition value is A$2.00 per share, implying an enterprise value of A$296 million or approximately US$225 million.

When is SS&C's acquisition of Mainstream expected to close?

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

What services does Mainstream Group provide?

Mainstream Group offers investment administration, middle office, fund accounting, and superannuation administration services.

How many funds and investors does Mainstream service?

Mainstream services over 1,200 funds and more than 157,000 investors.

What approvals are necessary for the acquisition of Mainstream by SS&C?

The acquisition requires approval from Mainstream shareholders, an Australian court, and various regulatory bodies.